Which of the following formulas calculates price-earnings (P/E) ratio?
A) Market price per share ÷ Book value per share
B) Earnings available to common stockholders (EAC) ÷ Number of shares
C) Common dividends ÷ Number of shares
D) Market price per share ÷ Earnings per share
E) Average cost of funds × Invested capital
Correct Answer:
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