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Success Ltd Has a Price-Earnings Ratio of 5 and Earnings

Question 44

Multiple Choice

Success Ltd has a price-earnings ratio of 5 and earnings per share of 22 cents. Its issued capital consists of 2 000 000 $1 ordinary shares. The market price per share is:


A) $1.10
B) $1.00
C) $4.40
D) None of the above

Correct Answer:

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