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3 years ago

When analyzing a price-earnings ratio:_________.

Business

1 answer:

frez [133]3 years ago

7 0

Answer:

B. The higher the price-earnings ratio, the more investors are paying for earnings.

Explanation:

When analyzing a price-earnings ratio the higher the price-earnings ratio, the more investors are paying for earnings.

Price-earning ratio: It is a ratio of stock´s price per share to the company´s earning per share. It is a measure the share price in relative to the total earning by the company per share. Higher price earning ratio shows the higher demand for the share in the market. The investor wants to invest in the company´s share even if they have to pay a higher price per share as they anticipate better earning per share in the future. This ratio also helps in evaluating the performance of the company before investing.

Formula; Price-earning ratio= $\frac{Current\ share\ price}{Earning\ per\ share}$

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iVinArrow [24]

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3 years ago

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AlexFokin [52]

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3 years ago

How would recession effect the economic

Virty [35]

Answer:

Recession cause standard monetary and fiscal effects.

Explanation:

Recession impact all kinds of business, large and small,due to tightening credit conditions, slower, demand, and general fear and uncertainty.

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3 years ago

Purchasing a diamond represents ________ because consumeres buy diamonds infrequently and have no estabilished criteria for eval

Vesnalui [34]

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3 years ago

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Kaylis [27]

Answer:

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Explanation:

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3 years ago