Solved

How Is the Price-Earnings Ratio Calculated

Question 88

Multiple Choice

How is the price-earnings ratio calculated?


A) Market price per share of stock divided by 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions