Which of the following ratios commonly used by investors to evaluate a potential stock investment uses the market price of the stock as part of the calculation?
A)earnings per share
B)price earnings ratio
C)dividend yield ratio
D)both b and c are correct

Question

Quizplus · Accepted Answer

Both the price-earnings ratio and the dividend yield ratio use the market price of the stock as part of their calculations. The price-earnings ratio is calculated by dividing the market price per share by the earnings per share, and the dividend yield ratio is calculated by dividing the dividend per share by the market price per share.

Which of the Following Ratios Commonly Used by Investors to Evaluate