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

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The Price-Earnings ratio is calculated by dividing the current market price per share by the earnings per share over the last year. This ratio helps investors determine the value of a stock relative to its earnings. Option A is incorrect as it uses book value instead of present market price. Option B is incorrect as it uses forecasted earnings instead of actual earnings. Option D is incorrect as it uses the average market price instead of the current market price.

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