How Is the Price-Earnings Ratio Calculated

question 88

Multiple Choice

How is the price-earnings ratio calculated?

• A)Market price per share of stock divided by earnings per share
• B)The interest rate on borrowed money divided by the current prime rate
• C)The price of a company's products as compared to its net income
• D)The market value of a company's stock divided by average earnings over the past three years

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Definitions:

Conflict Management Strategy

A systematic approach or technique adopted to handle and resolve conflicts in a constructive manner.

Concessions

Compromises made by one party to another during negotiations in order to reach an agreement or resolve a conflict.

Play Down Differences

The act of minimizing or understating the importance of disparities or variations among people or situations.

Accommodation

The process of adjusting one's behavior or thinking to align with others' expectations or to cope with new information.