The price-earnings ratio is calculated by dividing:
A. Dividends per share by earnings per share.
B. Market value per share by earnings per share.
C. Market value per share by dividends per share.
D. Dividends per share by market value per share.
E. Earnings per share by market value per share.
Answer: B
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Indicate whether this statement is true or false.
The Martin Company reported net income of $15,000 on gross sales of $80,000. The company has average total assets of $135,000, of which $102,000 is property, plant and equipment. What is the company's return on investment? (Round your final answer to 1 decimal place.)
A. 14.7% B. 11.1% C. 12.5% D. 18.8%
The expense recognition (matching) principle, as applied to bad debts, requires:
A. That bad debts be disclosed in the financial statements. B. That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions. C. The use of the allowance method of accounting for bad debts. D. That bad debts not be written off. E. The use of the direct write-off method for bad debts.
What type of information source have dominated the travel shopping market in the last decade?
a. online information sources b. traditional (magazines, brochures, etc.) c. TV d. none of the above