Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 13, Problem 17Q
To determine

Price/earnings ratio: Price/earnings ratio are used to determine the profitability of a company. This ratio is abbreviated as P/E.

Formula:

Price/earnings ratio= Market price per share of common stockEarnings per share

To determine: The company that favored the stock market.

Given info: Price earnings ratio of G Motors and M are given.

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License