Two measures that are often looked at in valuing a business are:
A)Earnings per Share and Dividend per Share.
B)Earnings per Share and Dividend Yield.
C)Price Earnings Ratio and Dividend Yield.
D)Price Earnings Ratio and Dividend per Share.

Question

Quizplus · Accepted Answer

The Price Earnings Ratio (P/E ratio) is a measure of a company's stock price relative to its earnings. A high P/E ratio indicates that the market has high expectations for the company's future earnings growth. Dividend Yield, on the other hand, measures the amount of cash flow that a shareholder will receive from owning the stock in the form of dividends. Dividend Yield is important for investors who are looking for regular income from their investments. Therefore, Price Earnings Ratio and Dividend Yield are two measures that are often looked at in valuing a business.

Two Measures That Are Often Looked at in Valuing a Business