If ABC Company earned $1,000,000 for the year and had 100,000 share of common stock
outstanding, what would be the Earnings Per Share (EPS) of the company?
$10
$20
$100
$10,000
50.10
Question 24
4 pts
If the price of one share of ABC company (from the question above) is selling for $100 per
share, what is the Price To Earnings (P/E) ratio?
1
10
20
100
None of the above
Question 25
4 pts
Which of the following statements regarding stocks and bonds is NOT true?
A well diversified portfolio often has investments in both stocks and bonds.
Stocks generally have the potential to generate larger returns over time than bonds do.
Bonds are generally seen as less risky than stocks.
Both corporate stocks and corporate bonds represent ownership in a corporation