A good measure of confidence in a corporation's future is
A) par value.
B) price/earnings ratio.
C) dividends yield.
D) return on equity.

Name: A good measure of confidence in a corporation's future is A) par value. B) price/earnings ratio. C) dividends yield. D) return on equity.
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Question

Quizplus · Accepted Answer

The price/earnings ratio (P/E ratio) is a measure of a company's current share price relative to its per-share earnings, indicating investor expectations and confidence in the company's future growth and profitability.

A Good Measure of Confidence in a Corporation's Future Is