The price/earnings ratio is also referred to as which of the following?
A)Multiple.
B)Dividend yield ratio.
C)Book value per share.
D)Capitalization rate.

Question

Quizplus · Accepted Answer

The price/earnings ratio (P/E ratio) is also known as the earnings multiple or simply the multiple. It measures the price paid per share for a company's stock relative to its earnings per share. This ratio is widely used to evaluate the value of a company and its shares. The other options listed, dividend yield ratio, book value per share, and capitalization rate are all different financial ratios used to evaluate a company or its shares, but they are not alternative names for the P/E ratio.

The Price/earnings Ratio Is Also Referred to as Which of the Following