In the Price/earnings Approach to Stock Valuation

question 25

Multiple Choice

In the price/earnings approach to stock valuation,

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

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Definitions:

Job Posting Site

An online platform where employers advertise job openings and potential employees can apply for those positions.

Monster

An online job portal and recruitment website that connects job seekers with job listings and career opportunities.

SNSs

Stands for Social Networking Services, which are platforms that allow users to build social networks or social relations among people who share interests, activities, backgrounds, or real-life connections.

User Profiles

Detailed descriptions of users, including their preferences, behavior patterns, and demographic information, often used in designing and marketing products.