Podcast
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 would be the total cost for an investor wishing to purchase 100 shares of FedEx at an ask price of $159.99?
- $15,999 (correct)
- $16,001
- $16,000
- $15,998
What is the calculated Price-to-Earnings (P/E) Ratio based on the given data?
What is the calculated Price-to-Earnings (P/E) Ratio based on the given data?
- 41.50
- 40.25
- 43.75
- 42.25 (correct)
Which of the following correctly represents the Dividend Yield based on the provided information?
Which of the following correctly represents the Dividend Yield based on the provided information?
- 0.85%
- 0.75%
- 1.00%
- 0.65% (correct)
If an investor is considering the dividend yield, what does a figure of 0.65% indicate?
If an investor is considering the dividend yield, what does a figure of 0.65% indicate?
What does the term 'ask price' signify in the stock market?
What does the term 'ask price' signify in the stock market?
The investor would expect to pay $15,999 for purchasing 100 shares of FedEx at an ask price of $159.99.
The investor would expect to pay $15,999 for purchasing 100 shares of FedEx at an ask price of $159.99.
The P/E Ratio calculated from the given data is 42.25.
The P/E Ratio calculated from the given data is 42.25.
A Dividend Yield of 0.65% means that an investor does not receive any dividends from their investment.
A Dividend Yield of 0.65% means that an investor does not receive any dividends from their investment.
If the bid price for FedEx is higher than the ask price, it indicates a buyer's market.
If the bid price for FedEx is higher than the ask price, it indicates a buyer's market.
The Dividend Yield can be calculated by dividing 1.00 by 160.39.
The Dividend Yield can be calculated by dividing 1.00 by 160.39.
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
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.
