Price-Earnings Ratio Is Computed by Dividing Annual Dividends by Average

question 196

True/False

Price-earnings ratio is computed by dividing annual dividends by average market value per share.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, measuring the net trade of goods and services with other economies.

Nominal Exchange Rate

The rate at which one country's currency can be traded for another country's currency.

Yuan

The currency unit of the People's Republic of China, often used to denote the basic monetary unit.

Real Exchange Rate

The real exchange rate is an economic measure that compares the relative price of domestic goods to foreign goods, adjusted for currency exchange rates.