Which of the Following Statements Concerning Price Earnings Ratio (PER)is

question 30

Multiple Choice

Which of the following statements concerning price earnings ratio (PER) is true?

• A) PER is calculated as current market price divided by dividends per share.
• B) PER is calculated as total shareholders' equity divided by earnings per share.
• C) PERs are commonly between 10 and 15 times for industrial companies.
• D) PER is not affected by a change in the share price.

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