Question Content Area The price-earnings ratio on common stock is computed as a. dividends per share of common stock divided by earnings per share on common stock b. market price per share of common stock divided by earnings per share on common stock c. earnings per share of common stock divided by market price per share of common stock d. market price per share of common stock divided by dividends per share of common stock

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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    The price-earnings ratio on common stock is computed as

    a. dividends per share of common stock divided by earnings per share on common stock
    b. market price per share of common stock divided by earnings per share on common stock
    c. earnings per share of common stock divided by market price per share of common stock
    d. market price per share of common stock divided by dividends per share of common stock
     
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