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Questions and Answers
What would be the total cost for an investor wishing to purchase 100 shares of FedEx at an ask price of $159.99?
What is the calculated Price-to-Earnings (P/E) Ratio based on the given data?
Which of the following correctly represents the Dividend Yield based on the provided information?
If an investor is considering the dividend yield, what does a figure of 0.65% indicate?
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What does the term 'ask price' signify in the stock market?
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The investor would expect to pay $15,999 for purchasing 100 shares of FedEx at an ask price of $159.99.
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The P/E Ratio calculated from the given data is 42.25.
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A Dividend Yield of 0.65% means that an investor does not receive any dividends from their investment.
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If the bid price for FedEx is higher than the ask price, it indicates a buyer's market.
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The Dividend Yield can be calculated by dividing 1.00 by 160.39.
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Study Notes
Stock Purchase Price
- An investor buying 100 shares of FedEx would likely pay $15,999
- This is based on the ask price of $159.99.
- The ask price is the minimum price a seller will accept for their stock.
- The bid price, $159.78, is the highest price a buyer is willing to pay.
P/E Ratio
- The P/E ratio is a key valuation metric.
- It represents the price-to-earnings ratio, which is the stock price divided by earnings per share.
- FedEx's P/E ratio is 42.25.
- This means an investor is willing to pay 42.25forevery42.25 for every 42.25forevery1 of earnings.
Dividend Yield
- Dividend yield reflects the annual dividend per share as a percentage of the stock price.
- FedEx's dividend yield is 0.65%.
- This means an investor would receive 0.65forevery0.65 for every 0.65forevery100 invested through dividends.
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Description
Test your knowledge on stock purchase price, P/E ratio, and dividend yield with this quiz focused on FedEx. You'll evaluate key concepts that every investor should know when making decisions about stocks and their valuations.
