This is the ratio for valuing a company that measures its current share price relative to its earnings per share.a.Dividend Yield per Shareb.EBITA multiplec.Book to Market Ratiod.Price to Earnings Ratio

This ratio shows the market`s expectations and is the price you must pay per unit of current earnings.a.Solvency Ratiob.Price-Earnings Ratioc.Liquidity Ratiod.EBITDA Multiple

This refers to the relationship between a company`s stock price and earnings per share.a.Liquidity Ratiob.Price-Earnings Ratioc.Solvency Ratiod.Acid Test Ratio

The price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS). Often called the price or earnings multiple, the P/E ratio helps assess the relative value of a company's stock. It's handy for comparing a company's valuation against its historical performance, against other firms within its industry, or the overall market.P/E can be estimated on a trailing (backward-looking) or forward (projected) basis.

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.

The earnings per share (EPS) ratio is calculated by dividing:a.Net income by total assetsb.Net income by shareholders' equityc.Net income by average number of shares outstandingd.Dividends by earnings