Problem

Choose the best answer to each of the following questions. Explain your reasoning with one...

Choose the best answer to each of the following questions. Explain your reasoning with one or more complete sentences.

 Excalibur’s P/E ratio of 75 tells you that

a. its current share price is 75 times its earnings per share over the past year.

b. its current share price is 75 times the total value of the company if it were sold.

c. it offers an annual dividend that is 1/75 of its current share price.

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