Which Financial Indicator Shows the Current Market's Evaluation of a Stock,based

question 2

Multiple Choice

Which financial indicator shows the current market's evaluation of a stock,based on its earnings?

• A) debt to asset ratio
• B) price/earnings ratio
• C) coverage of fixed charges
• D) debt to equity ratio
• E) times interest earned

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Definitions:

Punishment

A consequence that diminishes the frequency of the behavior it follows, often used in the context of behavior modification.

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or non-verbal.

Suppresses

The act of consciously or unconsciously holding back, restraining, or reducing a response, emotion, or biological process.

Short-term Results

Immediate or near-immediate outcomes or effects following an action or event, typically observable within a short time frame.