GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Liquid assets
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Current assets
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Current liabilities
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Earning per share
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Detailed explanation-1: -P/E is the price-to-earnings ratio and EPS is the earnings per share. Earnings per share: This measure is calculated by taking the net income earned by the corporate and dividing it by the number of outstanding shares issued.
Detailed explanation-2: -The P/E for a stock is computed by dividing the price of the stock by the company’s annual earnings per share.
Detailed explanation-3: -P/E Ratio is calculated by dividing the market price of a share by the earnings per share. P/E Ratio is calculated by dividing the market price of a share by the earnings per share. For instance, the market price of a share of the Company ABC is Rs 90 and the earnings per share are Rs 9 . P/E = 90 / 9 = 10.
Detailed explanation-4: -The key difference between EPS and P/E ratio is that EPS is a measure of a company’s profitability while P/E ratio is a measure of a stock’s valuation. EPS is calculated by dividing a company’s net income by the number of shares outstanding. P/E ratio is calculated by dividing a stock’s price by the company’s EPS.