Answered: Explain price/earnings (P/E) ratio

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Explain price/earnings (P/E) ratio

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter14: Valuation: Market-based Approach

Section: Chapter Questions

Problem 8QE

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Question

Explain price/earnings (P/E) ratio

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Step 1

There are various types of ratios. some ratios are to know the hearing capacity or market price of the company. price earning ratio is one of them.

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