The P/E Ratio Is Calculated by Dividing [Blank]

question 70

Multiple Choice

The P/E ratio is calculated by dividing [blank].

• A)the current shares price by shareholders' equity
• B)total assets by net profit
• C)the current shares price by earnings per share
• D)the current shares price by operating cash flow per share

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Definitions:

Null Hypothesis

A statement suggesting no statistical significance or effect, used as a default position that there is no relationship between two measured phenomena.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study based on theoretical grounds.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Larger Population

Refers to a greater number of individuals within a particular group or area being studied.