You Own a Share of Stock in Hershey Foods

Multiple Choice

You own a share of stock in Hershey Foods.In reviewing the stock information in the Wall Street Journal,you note that Hershey's PE ratio is 19.The PE ratio indicates:

A) the price Hershey Foods stock is trading at now.
B) the amount investors are willing to pay for every $1 of Hershey Food's earnings.
C) the percentage of Hershey Food's earnings paid out in dividends.
D) the amount you can expect to earn on the stock.