Which of the Following Is the Formula for Computing the Price-Earnings

question 29

Multiple Choice

Which of the following is the formula for computing the price-earnings ratio?

• A)Annual dividend per share of common stock/ market price per share
• B)Market price per share of common stock/ earnings 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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Definitions:

Duration

The length of time that something lasts or continues.

Physiological Response

The natural, biological reactions of the body to internal or external stimuli, such as heart rate increase in response to stress or exercise.

Acetaminophen

A medication used to reduce fever and relieve pain. It's known for its analgesic and antipyretic properties and is available over-the-counter.

Peak Action

The point at which a medication reaches its highest concentration in the blood, producing the maximum intended effect.