This refers to the relationship between a company`s stock price and earnings per share.a.Liquidity Ratiob.Price-Earnings Ratioc.Solvency Ratiod.Acid Test Ratio
Question
Solution 1
The correct answer is b. Price-Earnings Ratio. This ratio is used to evaluate the relationship between a company's stock price and its earnings per share. It is calculated by dividing the market value per share by the earnings per share (EPS). A high P/E ratio could mean that a company's stock is ov Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Similar Questions
The basic earnings per share ratio helps determine the amount of profit a company earned for each share of outstanding stock.
Sankey Company has earnings per share of $4.30. The benchmark PE is 19.5 times. What stock price would you consider appropriate?
earnings per share is the ratio of net income after taxes to the number of common stock shares outstanding.
Comparison of the market price of the share with the earnings per share gives us which ratio?a.Interest coverb.Dividend yieldc.Price/Earnings ratiod.IPO
The market price of common stock is based on investors’ expectations about future earnings. This statement is
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