Multiple Choice
Which of the following is true regarding the price-earnings ratio?
A) price-earnings ratio = market price per share/earnings per share
B) tables of stock prices and financial periodicals often present price-earnings ratios
C) P/E ratios should use normal, ongoing earnings data in the denominator
D) the analyst must interpret the published P/E ratios cautiously if the firm's net income includes unusual, nonrecurring gains and losses
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
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