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

question 150

Multiple Choice

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

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

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Definitions:

Law School

An educational institution specializing in the study of law and the training of future lawyers.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Profit-Maximizing

A strategy or approach adopted by firms aiming to make the highest possible profit from their operations, often involving adjustments in production or pricing.

Net Revenue

The total amount of income generated by a business after deducting costs directly associated with making and selling its products.