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TRUE X FALSE Tizi Co. reported annual earnings per share of $5. Tizi Co.s stock is currently selling for $60 per share. Therefore, the Price-Earnings

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Tizi Co. reported annual earnings per share of $5. Tizi Co.s stock is currently selling for $60 per share. Therefore, the Price-Earnings ratio is 12. It means that if Tizi Co. continued earning $5 per share of stock each year and paid out all its earnings to stockholders in the form of cash dividends, it would take 12 years for an investor to recover the price paid for the stock.

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