One Way to Value a Business Includes Comparing Its Price/earnings

question 3

Multiple Choice

One way to value a business includes comparing its price/earnings ratio to the price/earnings ratios of similar publicly traded companies in the same industry. This method is known as

• A) price method.
• B) market value method.
• C) fixed assets method.
• D) balance sheet method.
• E) primary earnings method.

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Definitions:

Chromosome

Carriers of genetic material in the form of DNA, present in the cell's nucleus and visible during cell division.

Nucleotides

Nucleotides are the basic building blocks of nucleic acids like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

Nucleotide

Monomer of nucleic acids; small molecule with a ribose or deoxyribose sugar, a nitrogen-containing base, and one, two, or three phosphate groups. E.g., adenine, guanine, cytosine, thymine, uracil.

Nitrogen-Containing Base

One of the building blocks of DNA and RNA molecules, including adenine, guanine, cytosine, thymine (in DNA) and uracil (in RNA), which are key to encoding genetic information.