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The price-earnings ratio (P/E ratio) is a measure of how much it costs to buy the earnings of a company. This statement is

A. True
B. False

User Agung
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1 Answer

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The P/E ratio is a measure of how much it costs to buy the earnings of a company.

The statement is True. The price-earnings ratio (P/E ratio) is indeed a measure of how much it costs to buy the earnings of a company. It is calculated by dividing the market price per share of a company by its earnings per share (EPS). The P/E ratio provides investors with information about how much they are willing to pay for each dollar of earnings.

User Ricky Gummadi
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