If the Components of Price/earnings Ratio Are Inverted, the Resulting

question 51

Multiple Choice

If the components of price/earnings ratio are inverted, the resulting percent is referred to as which of the following?

• A) Capitalization rate.
• B) Dividend yield ratio.
• C) Multiple.
• D) Book value per share.

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Definitions:

ABC Analysis

A method of classifying inventory items into categories based on their importance, such as value or turnover rate, to optimize inventory management.

Inventory Savings

Reductions in the cost associated with holding and managing inventory, typically achieved through more efficient inventory management practices.

Tightly Controlled

Refers to systems or processes that are strictly regulated or managed to ensure desired outcomes.

Put Option

A financial agreement that grants the owner the option, without the mandatory commitment, to sell a certain quantity of a fundamental asset at a predetermined price during a defined period.