Ask Question
7 April, 22:44

Which of the following is not true of P/E ratios? (Ignore option e.) a. It is calculated by dividing the stock price by EPS b. It can show whether a stock is under or overvalued c. Can be used to compare similar companies but not companies from different industries d. All of the above are true. e.

+5
Answers (1)
  1. 8 April, 01:10
    0
    The correct answer is letter "D": All of the above are true.

    Explanation:

    The Price-to-Earnings (P/E) ratio represents the relationship between a company's stock share price related to its earnings per share (EPS). The P/E ratio can give investors an idea if a company's share price is undervalued or overvalued. Besides, P/E ratios of companies with similar businesses can be compared to measure firms' performances.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is not true of P/E ratios? (Ignore option e.) a. It is calculated by dividing the stock price by EPS b. It can show ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers