The Price-Earnings Ratio Is Calculated by

question 177

Multiple Choice

The price-earnings ratio is calculated by

• A)Dividing dividends by earnings per share
• B)Dividing earnings per share by market price per share
• C)Dividing market price per share by earnings per share
• D)Dividing dividends by market price per share
• E)Dividing market price per share by dividends

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Definitions:

Cover

To obtain substitute or equivalent goods.

Obsolete

No longer produced or used; out of date.

Bushels of Wheat

A measurement unit for volume, commonly used in agriculture, representing the quantity of wheat.

Market Price

The current price at which an asset or service can be bought or sold in a given market.