Fill in the Blank QuestionFill in the blank question.Price-earnings ratio is equal to the price of a share of stock divided by the corporation's per of stock.
Question
Fill in the Blank QuestionFill in the blank question.Price-earnings ratio is equal to the price of a share of stock divided by the corporation's per of stock.
Solution
Price-earnings ratio is equal to the price of a share of stock divided by the corporation's per of stock.
To fill in the blank, we need to determine the missing word. The sentence structure suggests that the missing word should be a noun that relates to the corporation's stock.
Looking at the context, we can see that the price-earnings ratio is calculated by dividing the price of a share of stock by something related to the corporation's stock.
The missing word should be a measure or unit that represents the corporation's stock. One common measure used in finance is "earnings per share" (EPS), which represents the corporation's earnings divided by the number of outstanding shares.
Therefore, the missing word in the sentence is "earnings per share."
The complete sentence would be: "Price-earnings ratio is equal to the price of a share of stock divided by the corporation's earnings per share of stock."
Similar Questions
Fill in the Blank QuestionFill in the blank question.If the price per share is equal to $75.00 and earnings per share is equal to $2.50, then the price-earnings ratio is equal to .
Fill in the Blank QuestionFill in the blank question.The basic earnings per share ratio helps determine the amount of profit a company earned for each share of outstanding stock.
Fill in the Blank QuestionFill in the blank question.Earnings per share is equal to income divided by the number of outstanding of a firm's common stock.
A stock's price to earnings (P/E) ratio is determined in what manner?By dividing its annual earnings by the number of outstanding sharesBy dividing its market value by its original purchase priceBy dividing its annual earnings by its original purchase priceBy dividing its market value by the company's annual earnings per share
earnings per share is the ratio of net income after taxes to the number of common stock shares outstanding.
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