If the Price-Earnings Ratio Is 8 Times, the Earnings Yield

question 15

Multiple Choice

If the price-earnings ratio is 8 times, the earnings yield is:

• A)8%.
• B)12.5%.
• C)80%.
• D)10%.

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Definitions:

Service Sector

Refers to the segment of the economy that provides services rather than producing goods, including industries like retail, healthcare, and finance.

Labour-intensive

Describing industries or processes that require a large amount of manual labor compared to the amount of capital.

Automate

the process of using technology to perform tasks with minimal human intervention, improving efficiency and accuracy.

Intellectual Task

A task that requires cognitive skills and mental effort, involving thinking, problem-solving, and decision-making.