How Is the Price-Earnings Ratio Calculated

question 88

Multiple Choice

How is the price-earnings ratio calculated?

• A)Market price per share of stock divided by earnings per share
• B)The interest rate on borrowed money divided by the current prime rate
• C)The price of a company's products as compared to its net income
• D)The market value of a company's stock divided by average earnings over the past three years

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Definitions:

Multinational Corporation

A large company that operates and provides goods or services in multiple countries beyond its original country of establishment, often exercising significant economic and political influence globally.

Branch Plant

A factory or office operated in a country by a foreign company, often perceived as a subordinate extension of its parent company.

Collateral Labour Markets

Secondary or peripheral segments of the labour market characterized by lower job security, lower wages, and less formal employment structures.

Unions

Are organizations of workers that seek to defend and promote their members’ interests.