Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![7. Microsoft
P= $83.80
Earnings per share (EPS)=$4.05
Price Earnings Ratio (P/E ratio) =
Rate of return =
8. Apple
P=$178.85
EPS= $10.45
P/E ratio =
Rate of return =
9. Based on the rate of return, would you buy
Apple or Microsoft ?
10. Based only the rate of return, would you buy
Microsoft ( based on problem # 7) or the
following bond?
PB=$350,
Annual Interest Payment = $25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd766d8f3-72d8-4283-b2bb-2a7986741a74%2F52ed6390-43e9-4755-895c-34fa72fe8209%2Fqce39if_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. Microsoft
P= $83.80
Earnings per share (EPS)=$4.05
Price Earnings Ratio (P/E ratio) =
Rate of return =
8. Apple
P=$178.85
EPS= $10.45
P/E ratio =
Rate of return =
9. Based on the rate of return, would you buy
Apple or Microsoft ?
10. Based only the rate of return, would you buy
Microsoft ( based on problem # 7) or the
following bond?
PB=$350,
Annual Interest Payment = $25
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