Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S. companies. There appear to be a positive relationship between price/earnings ratio and earnings per share.
Definitions:
Note Payable
A written promise to pay a specified amount of money, typically with interest, by a certain date.
Decrease Assets
A reduction in the value or quantity of the assets owned by a company or individual.
Prepaid Insurance Account
An asset account on the balance sheet representing insurance premiums that have been paid in advance and are gradually expensed over the coverage period.
Premium
An amount paid in excess of the nominal or face value of something, often associated with insurance policies or bonds.
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