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      Question

      The 'Price/Earnings (P/E) Ratio' is calculated

      as:
      A Market Price per Share / Earnings per Share (EPS) Correct Answer Incorrect Answer
      B Earnings per Share (EPS) / Market Price per Share Correct Answer Incorrect Answer
      C Dividend per Share / Market Price per Share Correct Answer Incorrect Answer
      D Market Price per Share / Book Value per Share Correct Answer Incorrect Answer

      Solution

      The P/E Ratio is a valuation metric that measures a company's current share price relative to its per-share earnings. It indicates how much investors are willing to pay per rupee of earnings. A higher P/E could mean the market expects future growth.

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