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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Inadequate exchange of information that can lead to misunderstandings and errors in various contexts.

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