Market Value/Valuation Flashcards

1
Q

Price/Earnings Ratio

A

Price per share /Earnings per share = times

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2
Q

Market/Book Ratio

A

Market price per share / Book value per share

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3
Q

Rate of Return on Common Equity
(ROE)

A

ROA x Equity Multiplier
-ROA = Net Income/ Total Assets
-Equity Multiplier = Total Assets / Common Equity

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