Explain price/earnings (P/E) ratio

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 6DQ: Explain the calculation of net sales and net purchases.
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Explain price/earnings (P/E) ratio

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There are various types of ratios. some ratios are to know the hearing capacity or market price of the company. price earning ratio is one of them. 

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