The Financial Ratio Measured as the Price Per Share of Stock

question 32

Multiple Choice

The financial ratio measured as the price per share of stock divided by earnings per share is known as the:

• A) Return on assets.
• B) Return on equity.
• C) Debt-equity ratio.
• D) Price-earnings ratio.
• E) Du Pont identity.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses, culminating in a net profit or loss over a specific period.

Other than Temporary

A designation for impairments or losses that are expected to be permanent or long-lasting rather than temporary fluctuations.

Available-for-sale

A classification for financial assets implying that they can be sold in the future, but are not held primarily for trading purposes.

Investment Portfolio

A collection of investments held by an individual or institution which may include stocks, bonds, real estate, and other financial assets.