The P/E Ratio Is Determined by

question 123

Multiple Choice

The P/E ratio is determined by

• A) net worth divided by earnings.
• B) market capitalization divided by earnings.
• C) net worth per share divided by earnings per share.
• D) market value per share divided by earnings per share

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Definitions:

Disposed

Refers to the act of selling, throwing away, or giving away property, or the dealing with something that is no longer useful or required.

Gain

Refers to the increase in wealth or resources, typically measured in financial terms and often realized through investment or sale of assets.

Plant Asset

Long-term tangible assets used in the production of goods or services, including machinery, buildings, and equipment.

Depreciation

The methodical distribution of the expense of a physical asset across its expected lifespan.