Question

The __________________ is used to assess the relationship between the company’s stock and earnings, and is...

The __________________ is used to assess the relationship between the company’s stock and earnings, and is calculated by dividing the current market price per share by the earnings per share.


Net Profit Percentage

Price Earnings Ratio

Operating Profit Percentage

Gross Profit Percentage

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Answer #1

The Price Earnings Ratio is used to assess the relationship between the company’s stock and earnings and is calculated by dividing the current market price per share by the earnings per share.

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