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:
Excel
A spreadsheet program created by Microsoft that allows users to organize, format, and calculate data with formulas using a system of cells arranged in rows and columns.
Calculation
The process of determining a result numerically, often involving mathematical operations and formulas.
Present Value Factor
A multiplier used to determine the present value of a future cash flow, considering the time value of money.
Interest Rate
The percentage of a sum of money charged for its use, often expressed annually.
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