Which Financial Indicator Is Calculated by the Ratio of Market

question 55

Multiple Choice

Which financial indicator is calculated by the ratio of market price per share to earnings per share?

• A) return on investment
• B) price/earnings ratio
• C) return on equity
• D) dividend yield on common stock
• E) dividend payout ratio

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Definitions:

Environmental Quality

The state of the physical, chemical, and biological conditions of the environment based on various indicators.

Oligopolistic Agreements

Arrangements among competitors in an oligopoly to set prices, limit production, or divide markets, often to maximize collective profits.

Monopoly Price

The price set by a monopolist, typically higher than in competitive markets, due to the absence of competition in supplying a good or service.

Collusive Agreements

Secret or illegal cooperation or conspiracy, especially between businesses, in order to deceive or gain an unfair advantage.