Ask Question
BusinessBusiness
25 December, 20:47

Dividing a stock's current price per share by the issuing company's earnings per share results in

+3
Answers (2)
  1. 25 December, 20:52
    0
    Dividing a stock’s current price per share by the issuing company’s earnings per share results in the price-earnings ratio. Price-earnings ratio = price per share / earnings per share. The price per share is how much each share of stock costs to purchase. The earnings per share is how a company can see if they are profitable now and in the future.
  2. 25 December, 21:13
    0
    Price per share / Earnings per share = Price-Earnings Ratio

    Price-Earnings Ratio shows how much the investors are willing to pay per earnings for the company. For example, if the P/E Ratio is 15 suggests that the investors of a stock is willing to pay $15 per $1 of earnings of the company may produce over the year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dividing a stock's current price per share by the issuing company's earnings per share results in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Approximately what percentage of those in agriscience actually work directly on farms? 90% 52% 25% 17%
Answers (2)
On January 2, 2017, Bering Co. disposes of a machine costing $44,000 with accumulated depreciation of $24,625. Prepare the entries to record the disposal. under each of the following separate assumptions. 1. The machine is sold for $18,250 cash. 2.
Answers (1)
What is the overall change in cash resulting from: $248 increase in inventories, $186 increase in accounts payable, $139 decrease in accounts receivable, $61 decrease in other current assets, $84 decrease in other current liabilities?
Answers (1)
Why do you think it is important to choose the correct Business organization
Answers (1)
Weatherly Company reported the following results for the year ended December 31, 2016, its first year of operations: Income (per books before income taxes) $3,300,000 Taxable income 4,450,000 The disparity between book income and taxable income is
Answers (1)
New Questions in Business
Which of the following is true of development? It does not consider changes in technology, work design, and new customers in its modules. It focuses primarily on the current requirements of a job.
Answers (1)
Javier is the business manager at his college. In his role, Javier makes a lot of business decisions. Javier has installed a vending machine in a dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal.
Answers (1)
If the economy starts to boom and loan demand picks up, what do you predict will happen to the money supply?
Answers (1)
The comparative balance sheets of Friends, Inc. show a net increase in accounts receivable of $650 and a net decrease in inventory of $500. To determine net cash flow from operating activities under the indirect method, net income should be:
Answers (1)
A company has net sales of $1,630,200 and average accounts receivable of $418,000. What is its accounts receivable turnover for the period?
Answers (1)
Home » Business » Dividing a stock's current price per share by the issuing company's earnings per share results in
Sign Up Forgot Password?