Which of the Following Does a P/E Multiple Refer To

question 2

Multiple Choice

Which of the following does a P/E multiple refer to?

• A)price/expectations multiple
• B)price/earnings multiple
• C)profit/EBIT multiple
• D)profit/earnings multiple

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Definitions:

Intangible Benefits

Benefits that cannot be physically touched or quantified easily, such as brand reputation or customer loyalty.

Required Rate Of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset or project.

Tangible Costs

Costs that have a clear and direct physical presence or can be easily measured in monetary terms.

Investment Proposal

A formal suggestion for investing capital, typically encompassing projected costs, benefits, risks, and returns.