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The Price-Earnings Ratio on Common Stock Is Calculated as

Question 136

Multiple Choice

The price-earnings ratio on common stock is calculated as


A) market price per share of common stock, divided by earnings per share on common stock
B) earnings per share of common stock, divided by market price per share of common stock
C) market price per share of common stock, divided by dividends per share of common stock
D) dividends per share of common stock, divided by earnings per share on common stock

Correct Answer:

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