Which of the Following Ratios Indicate How Much Investors Are

question 106

Multiple Choice

Which of the following ratios indicate how much investors are willing to pay for the firm's stock for each dollar of reported profits?

• A) Earnings per share ratio
• B) Market/book ratio
• C) Price/earnings ratio
• D) Return on equity ratio
• E) Net profit margin ratio

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Definitions:

Human Contact

The interaction between individuals, providing social and emotional support.

Work Sharing

a strategy designed to reduce unemployment or workload for individuals by distributing tasks among a larger group, thereby also potentially reducing working hours for each participant.

Seniority

The concept of giving priority or advantages in a workplace based on the length of service or time an individual has been in a position.

Reduced Earnings

A decrease in the net income that a company generates over a defined period compared to past performances.