Which Ratio Compares the Earnings Per Share of a Company

question 84

Multiple Choice

Which ratio compares the earnings per share of a company to the market price for a share of the company's stock?

• A)Return on equity
• B)Dividend yield
• C)Book value per share
• D)Price-earnings ratio

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Definitions:

Hawk-Dove Game

A model in game theory that examines the strategies of individuals in a conflict, where 'hawks' represent aggression and 'doves' represent peacefulness.

Payoff

The gain or loss realized from an investment, action, or decision.

Proportion

A segment or proportion evaluated in its relationship to the complete unit.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.