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Homework answers / question archive / The price-earnings ratio is the:   Market value of a share of common stock divided by Net Income after Dividend Stated value of a share of common stock divided by EPS

The price-earnings ratio is the:   Market value of a share of common stock divided by Net Income after Dividend Stated value of a share of common stock divided by EPS

Accounting

The price-earnings ratio is the:

 

Market value of a share of common stock divided by Net Income after Dividend

Stated value of a share of common stock divided by EPS.

Par Value of a share of common stock divided by EPS.

None of the above

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The price-earnings ratio is the Market value of a share of common stock divided by Net Income after Dividend.

EPS = (Net income - preferred dividends) / Average outstanding common shares

 

P/E ratio = Market value of share of common stock / Earnings per share

correct option is 1). Market value of a share of common stock divided by Net Income after Dividend

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