The Price/earnings Ratio Indicates

question 66

Multiple Choice

The price/earnings ratio indicates

• A)The amount of earnings that a company is willing to pay to shareholders in the form of dividends.
• B)What multiple of current earnings investors are willing to pay for a share of stock.
• C)The net income available to pay out in dividends to shareholders.
• D)None of these ans choices are correct.

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Definitions:

Completed Contract Method

The Completed Contract Method is an accounting approach where revenue and expenses of a contract are recorded only when the contract is completed.

Construction In Progress

An accounting term for the total cost incurred for constructing long-term, physical, non-current assets that are not yet completed at the end of a company’s accounting period.

Fixed Contract

An agreement with terms that set specific prices, conditions, and timeframes, not subject to change.

Eastern Spadefoot Toad

A species of toad known for its distinctive spade-like projections on its hind legs, aiding in burrowing.