The Price-Earnings Ratio Is The

question 17

Multiple Choice

The price-earnings ratio is the:

• A)Book value of a share of common stock divided by EPS.
• B)Market price of a share of common stock divided by EPS.
• C)Par value of a share of common stock divided by EPS.
• D)Market price divided by book value of a share of stock.

---

Definitions:

Psia Gauge

A pressure measurement expressed in pounds per square inch absolute, including the atmospheric pressure.

Atmospheric Pressure

Ambient pressure at sea level equivalent to 14.7 psia, 101.3 kPa, 1 atm, or 1.01 bar.

Psia

Pounds per square inch absolute. Measure of pressure values used in North America that factors in atmospheric pressure of 14.7 psi.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, crucial for weather patterns and breathing.