The ________ ratio is commonly used to assess the owner's appraisal of the share value.
A) debt
B) price/earnings
C) return on equity
D) return on total assets

Question

Quizplus · Accepted Answer

The price/earnings ratio, or P/E ratio, is a measure of a company's current stock price compared to its earnings per share. It is commonly used to assess the appraisal of the share value by owners or investors. A higher P/E ratio generally indicates that the market has higher expectations for the company's future earnings growth.

The ________ Ratio Is Commonly Used to Assess the Owner's