The closing price of a stock is quoted at 22.87, with a P/E of 26 and a net chan

Question

The closing price of a stock is quoted at 22.87, with a P/E of 26 and a net change of 1.42. Based on this information, which one of the following statements is correct?

a. The closing price on the previous day was $1.42 higher than today's closing price.

b. A dealer will buy the stock at $22.87 and sell it at $26 a share.

c. The stock increased in value between yesterday's close and today's close by $.0142.

d. The earnings per share are equal to 1/26th of $22.87.

a. The closing price on the previous day was $1.42 higher than today's closing price.

b. A dealer will buy the stock at $22.87 and sell it at $26 a share.

c. The stock increased in value between yesterday's close and today's close by $.0142.

d. The earnings per share are equal to 1/26th of $22.87.

Explanation / Answer

Option D.

SinceP/E=26 and p=22.87

E=P/26

=1/26*22.87

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