What does price earnings ratio

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Reference no: EM132015969

1. What does a price earnings (PE) ratio of 18 mean?

a For each $100 paid, you can expect $18 in annual dividends.

b For each $100 paid, you can expect $18 of annual earnings.

c For each $1 of annual earnings, you must pay $18 for the stock.

d For each $1 of annual dividends, you must pay $18 for the stock.

2. What price do you pay for a $5,000 Treasury bond based on a quote of 118:14?

a $5,118.14

b $5,907.00

c $5,922.00

d $5,921.88

Reference no: EM132015969

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