1. Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate

1. Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company. a. $6 per shareb. $10 per sharec. $0.20 per shared. $5 per share2. Which of the following formulas regarding earnings to price ratio is true: a. EPS/Po = r[1 + (PVGO/Po]b. EPS/Po = r[1 (PVGO/Po)]c. EPS/Po = [r + (PVGO/Po)]d. EPS/Po =[r + (1+(PVGO/Po)]/r3. Generally high growth stocks pay: a. Low or no dividendsb. High dividendsc. Erratic dividendsd. Both A and C4. A high proportion of the value a growth stock comes from: a. Past dividend paymentsb. Past earningsc. PVGO (Present Value of the Growth Opportunities)d. Both A and B