Question: Multiple Select Question Select all that apply Which of the following statements are true regarding the price / earning ( P / E ) ratio?
Multiple Select Question
Select all that apply
Which of the following statements are true regarding the priceearning PE ratio?
The PE ratio is one of the most important measures used by investors to evaluate the market price of a firm's common stock.
The PE ratio is sometimes referred to as earnings per share.
Diluted earnings per share is usually the denominator of the PE calculation.
Analysts sometimes use expected future earnings per share and the current market price in the calculation to evaluate the prospects for changes in
the stock's market price.
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