What does a price/earnings ratio measure? What does a price/earnings ratio of 33.4 imply?
What will be an ideal response?
A price/earnings ratio measures the price of a stock share divided by earnings (profits) per share. A P/E ratio of 33.4 implies that investors are paying $33.40 for every $1 of discounted future profits, and implies a rate of return of 1 รท $33.40, or 2.99 percent.
You might also like to view...
Suppose that you consume only pizza and Diet Pepsi. The table above gives your utility from consuming these two goods. What is the marginal utility you get from the fourth slice of pizza?
A) 36 B) 18 C) 12 D) 4
Most tariffs have
A) only revenue effects. B) only protective effects. C) both protective and revenue effects. D) neither protective nor revenue effects.
A price-discriminating firm charges the lowest price to the group that
a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.
________: the number of units of foreign currency that can be exchanged for one unit of domestic currency
Fill in the blank(s) with correct word