The Price/earnings Ratio Indicates The

question 25

Multiple Choice

The price/earnings ratio indicates the:

• A) dividend yield of the company.
• B) market price of $1 of earnings.
• C) percentage of common stock financed by debt.
• D) ease of selling inventory.

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Definitions:

Shaping

A method of operant conditioning by which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.

Generalization

The process in psychology by which a response is made to a stimulus that is similar to, but not identical to, the stimulus that conditioned the response.

Extinction

The process by which a learned behavior becomes less common or disappears altogether when reinforcement is no longer associated with it.

Punishment

A process in behavioral psychology intended to reduce undesired behaviors by applying negative consequences.