The fiNancial Ratio Measured as the Price Per Share of Stock

question 296

Multiple Choice

The financial ratio measured as the price per share of stock divided by earnings per share is known as the:

• A) Return on assets.
• B) Return on equity.
• C) Debt-equity ratio.
• D) Price-earnings ratio.
• E) Du Pont identity.

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Definitions:

Brake Pedal

The pedal in a vehicle that operates the brake system to slow down or stop the vehicle.

Regenerative Braking

A method of braking in which energy is recovered and converted into electrical energy, which can then be stored and used later, often found in hybrid and electric vehicles.

Kinetic Energy

The energy an object possesses due to its motion, which is dependent on the mass and the square of its velocity.

Pressure Differential Valve

A valve used in hydraulic systems to maintain a consistent pressure difference between two points, crucial in braking systems for safety.