The Price/earnings Ratio (P/E) Is Calculated As

question 195

Multiple Choice

The price/earnings ratio (P/E) is calculated as:

• A) stock price divided by earnings per share
• B) stock price times earnings per share
• C) earnings per share divided by stock price
• D) stock price divided by the difference between earnings per share and cash dividends per share

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Definitions:

Volley Principle

A theory in neuroscience that suggests multiple neurons can collectively transmit a higher frequency of signals by firing in synchronization, especially relevant in the context of auditory processing.

Frequency Theory

A theory regarding how sounds are converted into electrical signals in the brain to interpret pitch by the rate of hair cell vibrations.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound.

Hair Cells

Sensory cells located in the inner ear that are critical for converting sound vibrations into electrical signals that the brain can understand.