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:

Demand

The desire to own something and the ability to pay for it, represented by how much of a good or service consumers are willing to buy at different prices.

Schedule

A plan that outlines specific times at which certain tasks, events, or operations are to occur.

Market Prices

The current value at which goods or services can be bought or sold in an open market.

Supply and Demand

A foundational economic model that explains how prices and quantities of goods and services adjust in a market based on the interaction between sellers' supply and buyers' demand.