INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
When the prevailing market price of a share of common stock is divided by the annual earnings per share (EPS), the result is the [ return on equity (ROE) | price/earnings (P/E) ratio ].