Which of the Following Is the Formula for Computing the Price-Earnings

question 134

Multiple Choice

Which of the following is the formula for computing the price-earnings ratio?

• A)Market price per share of common stock/ earnings per share
• B)Annual dividend per share of common stock/ market price per share
• C)(Net income- preferred dividends)/ number of shares of outstanding common stock
• D)Total stockholder's equity/ number of shares of outstanding common stock

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Definitions:

NFL Jersey

An officially licensed piece of apparel that represents a player or team in the National Football League, often worn by fans.

Baseball Cap

A type of soft cap with a rounded crown and a stiff bill projecting in front, commonly worn in casual settings.

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The Asch Experiment was a psychology experiment on conformity, showing how social pressure can cause individuals to conform to incorrect group opinions.

Confederates

Individuals who are part of a larger group working towards a common goal, or in experimental psychology, individuals who appear to be part of an experiment but are actually working for the researcher.