In the Price/earnings Approach to Share Valuation

question 23

Multiple Choice

In the price/earnings approach to share valuation,

• A) the P/E ratio is computed by multiplying the share price by the earnings per share.
• B) the market P/E ratio, adjusted by beta, is used to value individual shares.
• C) forecasted EPS are typically used.
• D) historical share prices are utilised.

---

Definitions:

Fresh Vegetables

Vegetables that are consumed in their natural, unprocessed form, often characterized by their crispness and full flavor.

Skipping Breakfast

The habit of not consuming the first meal of the day, which can affect energy levels and metabolic health.

Manage Weight

Efforts and practices aimed at maintaining a healthy body weight through diet, exercise, and lifestyle choices.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extremely low body weight, a relentless pursuit of thinness, a fear of gaining weight, and a distorted body image.