Which of the following is an estimate of how much money investors will pay for each dollar of the organization's earnings?
A) Interest coverage ratio
B) Net profit margin
C) Return on equity
D) Market value
E) Price-to-earnings ratio

Question

Quizplus · Accepted Answer

Price-to-earnings ratio (P/E ratio) is an estimate of how much investors are willing to pay for each dollar of the organization's earnings. It is calculated by dividing the market value per share by the earnings per share.

Which of the Following Is an Estimate of How Much