The PE ratio for a stock is
A. the predicted earnings per share of the stock divided by its current yield.
B. the price of the stock divided by its earnings per share.
C. the current yield of the stock.
D. the predicted volatility of the stock.
Answer: B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of coconuts in Guatemala?
A) 1/2 of a ton of pineapples B) 1 1/3 tons of pineapples C) 2 tons of pineapples D) 90 tons of pineapples
Comment on the following statement and evaluate it. "Differentiating a product separates you from your competitors so the market will see you as delivering unique benefits. But you don't want to be too different."
What will be an ideal response?
Which of the following statements is TRUE?
A) Bank failure is limited to banks that have mismanaged their assets. B) Bank failure is limited to banks that have invested in real estate. C) Bank failure is limited to banks that have invested in government bonds. D) Bank failure is limited to a few banks. E) Bank failure is NOT limited to banks that have mismanaged their assets.