Multiple choice

1.  General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. The P/E ratio is about 18.3. Calculate the market capitalization for GE. (Approximately)  

a. $679 billion 

b. $188 billion 

c. $382 billion 

d. None of the above 

2.  The Wall Street Journal quotation for a company has the following values: Div: $1.12, PE: 18.3, Close: $37.22. Calculate the dividend payout ratio for the company (Approximately).  

a. 18% 

b. 55% 

c. 45% 

d. None of the above 

3.  If the Wall Street Journal Quotation for a company has the following values close: 55.14; Net 

chg: = +1.04; then the closing price for the stock for the previous trading day was?  

a. $56.18 

b. $54.10 

c. $55.66 

d. None of the above 

4. Mr. X invests $1000 at 10% nominal rate for one year. If the inflation rate is 4%, what is the real value of the investment at the end of one year?  

a. $1100 

b. $1000 

c. $1058 

d. None of the above