Question

Abc and mno both have the same market price and shares outstanding for their common stock. if abc's price-to-earnings ratio is higher, that would indicate?

Answer 1

If ABC's price-to-earnings ratio is higher, that would indicate ABC's net income is less than MNOs.

If ABC's price-to-earnings ratio (MV per share / EPS)

Is higher than MNOs, then its earnings (defined as net income ÷ shares outstanding) are lower than MNOs.

The information provided does not provide enough detail to know whether ABC or MNO had higher sales.

Net income refers to the amount a character or commercial enterprise makes after deducting fees, allowances, and taxes. In trade, internet earnings are what the business has left over in spite of everything prices, inclusive of salary and wages, price of products or uncooked substances,s and taxes.

In enterprise and accounting, internet profits is an entity's profits minus the price of products bought, costs, depreciation and amortization, interest, and taxes for an accounting duration.

Gross pay is what personnel earn earlier than taxes, advantages, and different payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net income or take-home pay.

Learn more about net income here brainly.com/question/15530787

#SPJ4