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:

Expanding Store

An expanding store refers to a retail business that is increasing its physical size or number of locations to accommodate more customers or provide a wider range of products and services.

Optimize Growth

Refers to strategies or approaches aimed at maximizing the rate of growth of an economy, organization, or specific area of development.

Annual Profit

The total earnings or surplus of an organization, company, or individual after all expenses and costs are deducted from total revenues over one year.

Strategy Cooperation

A cooperative approach in strategic decision-making where entities align their strategies for mutual benefit.