The P/E ratio is the price of the share divided by the amount the corporation earned in the last financial year.

Name: The P/E ratio is the price of the share divided by the amount the corporation earned in the last financial year.
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Quizplus · Accepted Answer

The P/E ratio, or price-to-earnings ratio, is indeed calculated by dividing the price per share by the earnings per share for the last financial year. This helps investors assess how much they are paying for each dollar of earnings the company generates.

The P/E Ratio Is the Price of the Share Divided