The firm's price-earnings (P/E)ratio is not influenced by its:

Name: The firm's price-earnings (P/E)ratio is not influenced by its:
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Question

Quizplus · Accepted Answer

The price-earnings (P/E) ratio is a measure of the market value of a company's stock compared to its earnings. It is calculated by dividing the market price per share by the earnings per share. The P/E ratio is influenced by a company's earnings, profit margins, and sales, but it is not affected by its capital structure or the purchase of machinery.

The Firm's Price-Earnings (P/E)ratio Is Not Influenced by Its