Which One of the Following Statements Related to the Price-Earnings

question 5

Multiple Choice

Which one of the following statements related to the price-earnings (P/E) ratio is correct?

• A)The earnings yield is the inverse of the P/E ratio.
• B)The P/E ratio is equal to the market price per share divided by total net income.
• C)The P/E ratio shown in The Wall Street Journal is based on next year's estimated earnings per share.
• D)The P/E ratio varies directly with earnings per share.
• E)The earnings for the past twelve months is the method analysts prefer for computing earnings for the P/E ratio.

---

Definitions:

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, aiming to improve business relationships and increase customer loyalty and retention.

Online Operations

activities and processes that are conducted over the internet, encompassing e-commerce, digital marketing, and virtual service delivery.

Product Flow

Product flow describes the movement of goods from supplier to manufacturer to wholesaler to retailer to consumer.

Supply Chain

The complete system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery to the consumer.