A Company's P/E Ratio Is

question 85

Multiple Choice

A company's P/E ratio is:

• A)the price of one share of its common stock divided by its earnings per share.
• B)its profits per share divided by its equity per share.
• C)its profits per share divided by its excess cash flow per share.
• D)the price of one share of its common stock divided by external capitalization.

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Definitions:

Open Circulatory System

A type of circulatory system found in some invertebrates where blood flows freely in the body cavity, bathing organs directly in blood.

Polyp

A hydralike animal; the sessile stage of the life cycle of certain cnidarians. Compare with medusa.

Stinging Cell

A Stinging Cell, or cnidocyte, is a specialized cell found in the tentacles of jellyfish and other cnidarians used for prey capture and defense by discharging a toxic substance.

Radula

A unique, toothed structure found in mollusks, used for scraping or cutting food before ingestion.