The price/earnings (PE) ratio of a stock is found by
a. dividing the most recent year's dividend by the current stock price
b. dividing the current stock price by the after-tax profit per share
c. dividing the most recent year's dividend by retained earnings
d. dividing the current stock price by the Dow Jones Industrial Average
e. dividing the current stock price by the present value of the firm
B
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If total utility is increasing as more of a good is consumed: a. marginal utility must be decreasing
b. marginal utility must be increasing at an increasing rate. c. marginal utility is positive. d. both (b) and (c) are true.
During the financial crisis of 2007-2009 the interest rate on mortgage-backed securities had
a. increased and the Treasury interest rate had risen. b. increased and the Treasury interest rate had fallen. c. decreased and the Treasury interest rate had risen. d. decreased and the Treasury interest rate had fallen.