Which of the Following Formulas Regarding the Earnings-To-Price Ratio Is

question 27

Multiple Choice

Which of the following formulas regarding the earnings-to-price ratio is true?

• A)EPS/P₀ = r[1 + PVGO/P₀]
• B)EPS/P₀ = r[1 - PVGO/P₀]
• C)EPS/P₀ = [r + PVGO/P₀]
• D)EPS/P₀ = [1 + r + PVGO/P₀)]/r

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