The Price/earnings (P/E)ratio Is Measured in Terms of

question 103

Multiple Choice

The price/earnings (P/E) ratio is measured in terms of

• A) dollars.
• B) days.
• C) a percentage.
• D) times.

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Definitions:

Equity Method

An accounting technique used by companies to assess the profits earned through their investments in other companies by reporting these profits as an increase in the asset value of the investment.

Unrealized Intercompany Profits

Profits generated from transactions between entities within the same group that have not yet been realized through sales to an external party.

Tax Rate

The percentage at which an individual or corporation is taxed.

Net Incomes

The total earnings of a company after deducting all expenses and taxes, indicating the financial performance over a period.