Which Method of Determining a Firm's Net Worth Divides the Market

question 46

Multiple Choice

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?

• A) Debt/Equity Method
• B) Current Ratio Method
• C) Price-Earnings Ratio Method
• D) Long-term Asset Method
• E) Outstanding Shares Method

---

Definitions:

Brain Injury

Physical damage to the brain, which can result in temporary or permanent impairment of cognitive, physical, and psychosocial functions.

Cognitive Disorders

A category of mental health disorders that primarily affect learning, memory, perception, and problem solving, including dementia and amnesia.

Disorientation

A state of confusion regarding time, place, or personal identity, often resulting from neurological disorder or traumatic experiences.

Clouding

A term used to describe a state of reduced awareness, clarity, or cognitive function, often temporary.