A stock's price-earnings ratio is computed by A. subtracting the stock price per share from the stock's annual earnings per share. OB. dividing the stock price per share by the stock's annual earnings per share. OC. adding the stock price per share to the stock's annual earnings per share. OD. mutiplying the stock price per share by the stock's annual earnings per share.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Dollars
C
BA
А
O
EF
Q
MC
AC
AVC
AFC
Quantity
efer to the figure above. At output level OQ:
Transcribed Image Text:Dollars C BA А O EF Q MC AC AVC AFC Quantity efer to the figure above. At output level OQ:
A stock's price earnings ratio is computed by
OA. subtracting the stock price per share from the stock's annual earnings per share.
OB. dividing the stock price per share by the stock's annual earnings per share.
OC. adding the stock price per share to the stock's annual earnings per share.
OD. mutiplying the stock price per share by the stock's annual earnings per share.
Transcribed Image Text:A stock's price earnings ratio is computed by OA. subtracting the stock price per share from the stock's annual earnings per share. OB. dividing the stock price per share by the stock's annual earnings per share. OC. adding the stock price per share to the stock's annual earnings per share. OD. mutiplying the stock price per share by the stock's annual earnings per share.
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