The price of the stock divided by the profits per share of stock is known as the
A) price-earnings ratio.
B) dividend.
C) yield in percent per year.
D) number of shares traded during the day.
Answer: A
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A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced
A) linear B) bowed outward C) bowed inward D) perfectly horizontal
An increase in the interest rate would induce people to
A) sell shares of stock and buy bonds, but would have no effect on their desire to hold money. B) get rid of all their money and buy stocks with it. C) sell their least liquid assets and hold more money in case interest rates go up again. D) hold a smaller fraction of their wealth in the form of money.
Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Along this portion of the demand curve, price elasticity of demand is:
A. 0.8. B. 1.2. C. 1.6. D. 8.0.
Medicare, Part B is
A. compulsory at a low premium. B. voluntary at a low premium. C. voluntary at a high premium. D. compulsory at a high premium.