This Approach Is Used Regularly by Security Analysts to Measure

question 54

Multiple Choice

This approach is used regularly by security analysts to measure a stock's relative value,or how much investors are willing to pay for a dollar of the company's earnings.It is found by dividing the price per share by the earnings per share and is called the

• A)P/E ratio.
• B)technical industry analysis.
• C)fundamental analysis.
• D)discounted dividends valuation.
• E)market-to-price ratio.

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