Asked by Cassie Owens on Jun 05, 2024
Verified
The price-earnings ratio is computed by dividing earnings per share by the par value per share.
Price-earnings Ratio
A valuation ratio of a company's current share price compared to its per-share earnings, indicating market expectations.
Earnings Per Share
Earnings per share (EPS) is a financial metric that divides a company's profit by the number of outstanding shares, indicating the profitability attributed to each share.
Par Value
The nominal or face value of a stock or bond as stated by the issuing company, not necessarily reflecting its market value.
- Examine the role of financial ratios like dividend yield and price-earnings ratio in appraising the performance of a company.
Verified Answer
Learning Objectives
- Examine the role of financial ratios like dividend yield and price-earnings ratio in appraising the performance of a company.
Related questions
The Price-Earnings Ratio Reveals Information About the Stock Market's Expectations ...
Dividend Yield Is Computed by Dividing Earnings Per Share by ...
Lewis Company Had Net Income of $67,000 ...
Du Pont Analysis Breaks a Firm's ROE into Components Such ...
A Firm Has a Lower Inventory Turnover, a Longer ACP ...