Multiple Choice
The price-earnings ratio is calculated as:
A) The market price of a share of stock divided by the earnings per share.
B) The interest rate on borrowed money divided by the current prime rate.
C) The price of a company's products as compared to its net income.
D) The market value of a company's stock divided by average earnings over the past three years.
Correct Answer:
Verified
Correct Answer:
Verified
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