Within the Stock Quotations, a firm's Price-Earnings ratio is calculated by taking its

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The Price-Earnings (P/E) ratio is calculated by dividing the current market price per share by the earnings per share over the last year. It is a valuation metric that shows how much investors are willing to pay for each dollar of a company's earnings. Option C is the only choice that accurately reflects this calculation. Option A uses book value instead of market price, while option B uses forecasted earnings instead of actual earnings. Option D uses average market price instead of current market price.

Within the Stock Quotations, a Firm's Price-Earnings Ratio Is Calculated