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Which of the Following Formulas Regarding Earnings to Price Ratio

Question 9

Multiple Choice

Which of the following formulas regarding earnings to price ratio is true:


A) EPS/Po = r[1 + (PVGO/Po]
B) EPS/Po = r[1 - (PVGO/Po) ]
C) EPS/Po = [r + (PVGO/Po) ]
D) EPS/Po = [r + (1 + (PVGO/Po) ]/r

Correct Answer:

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