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The Price/earnings (PE)ratio of a Stock Is Found by

Question 65

Multiple Choice

The price/earnings (PE) ratio of a stock is found by


A) dividing the most recent year's dividend by the current stock price
B) dividing the current stock price by the after-tax profit per share
C) dividing the most recent year's dividend by retained earnings
D) dividing the current stock price by the Dow Jones Industrial Average
E) dividing the current stock price by the present value of the firm

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