Which Method of Determining a Firm's Net Worth Divides the Market

question 108

Multiple Choice

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?

• A) Debt/equity method
• B) Current ratio method
• C) Price-earnings ratio method
• D) Long-term asset method
• E) Outstanding shares method

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