The P/E ratio, or price to earnings ratio of a stock, can be computed using which of the following formulas?
A. (Price of stock share) ÷ (Earnings per share).
B. (Earnings per share) ÷ (Price of stock share).
C. (Price of stock share) ÷ (Revenue per share).
D. (Revenue per share) ÷ (Price of stock share).
Answer: A
You might also like to view...
When economists use the term "ceteris paribus," they mean that: a. the causal relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole
c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative rather than positive economic analysis.
Assume that the Fed increases the money supply when there is substantial unemployment in the economy. According to the quantity theory of money, if velocity is constant, then:
a. the price level will decrease. b. real GDP will decrease. c. nominal GDP will increase. d. nominal GDP will decrease. e. real GDP will remain constant while price level will decrease.
Charging firms that emit pollutants is one way to deal with pollution
a. True b. False Indicate whether the statement is true or false
The transaction demand for money is most clearly related to its use as a
A. medium of exchange. B. standard of value. C. measure of value. D. store of value. E. standard of deferred payment.