How Is a Stock's Price-Earnings Ratio Found

question 121

Multiple Choice

How is a stock's price-earnings ratio found?

• A)by dividing the dividend by the closing price of the stock
• B)by dividing the dividend by the firm's earnings per share
• C)by dividing current market price of the stock by the firm's earnings per share
• D)by subtracting the firm's earnings per share from the closing price of the stock

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Definitions:

Business Reports

Documents that provide an analysis of the situation, including recommendations, to help make business decisions.

Completing Tasks

Completing tasks involves finishing set duties or assignments effectively and within the stipulated timeframe.

Employee Lists

Records maintained by a business that contain information about its employees, such as contact details and employment history.

QBO Online

Refers to QuickBooks Online, a cloud-based accounting software solution designed for small and medium-sized businesses.