GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Price Ratio Method is
A
Asset Method
B
Growth Method
C
Earning Yield Method
D
Dividend Yield Method
Explanation: 

Detailed explanation-1: -Earnings yield refers to the earnings per share in a financial period, divided by the current share price. It is the reciprocal of the P/E ratio. The earnings yield helps investors know how much he has earned per share. If a company has an earnings yield of 8%, it means that the investor has earned Rs.

Detailed explanation-2: -Key Takeaways. The basic definition of a P/E ratio is stock price divided by earnings per share (EPS). EPS is the bottom-line measure of a company’s profitability and it’s basically defined as net income divided by the number of outstanding shares. Earnings yield is defined as EPS divided by the stock price (E/P).

Detailed explanation-3: -Price earning to growth and dividend yield (PEGY) is a metric used in stock analysis that measures a stock’s potential for future earnings growth and dividend payments. The price earning to growth and dividend yield is sometimes also called the dividend-adjusted PEG ratio.

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