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Under the P/E model, stock price is a product of_____________.

Under the P/E model, stock price is a product of_____________. Correct Answer P/E ratio and EPS

Under the P/E model, stock price is a product of P/E ratio and EPS. The price-to-earnings ratio (P/E) is a valuation method used to compare a company's current share price to its per-share earnings.

Related Questions

Two stores A and B bought the same product from the company at the same price. Store A marked the price of the product 50% above its cost price and offered two successive discounts of 15% and 10% on the marked price of the product, while store B marked the price of the product 60% above its cost price and offered two successive discounts of 15% and 12% on the marked price of the product. If a customer buys the product from store B, he has to pay Rs. 986 more than that at store A. At what price the two stores bought the product from the company?
Product A is costlier than product B by Rs. 2. If the price of product A is increased by two times the price of product B. the new price of product A become Rs. 17. What is the price of product B?
In the following question, two statements are numbered as A and B. On solving these statements we get quantities A and B respectively. Solve for the both quantities and choose the correct option. Quantity A: A shopkeeper marks the price of his product 20% above its cost price and sells it at a discount of 10%. If he earns a profit of Rs. 120, what is the cost price of the product? Quantity B: A product is successively sold twice earning a profit of 10% and 20% respectively. If the original cost price of the product is Rs. 1050, what is the final selling price of the product?
Match List I with List II: List I (Pricing Strategies) List II (Description) (A) Ramsay pricing (I) Setting a high price when a product is first introduced and gradually lowering price as it gains scale (B) Price skimming (II) Firm charges lower price (than the ongoing price) to gain market entry (C) Cost plus pricing (III) Price deviations from marginal cost should be inversely proportional to price elasticity of the product (D) Penetration pricing (IV) It is full cost pricing strategy that also includes mark up for target return, degree of competition, price elasticity and availability of substitutes. Choose the correct answer from the options given below:
The Weberian model of bureaucracy has been criticised from a variety of stand points.
Consider the following points in this regard:
1. The Weberian model appears to be a 'machine theory' and a closed system model taking little account of organisational interactions with the environment.
2. The structural features of bureaucracy as laid down by Weber might be suitable for routine and repetitive tasks but these would produce dysfunctional consequences in terms of human behaviour if the jobs would involve innovation and creativity.
3. Weberian model has not been found to respond adequately to the tasks of socioeconomic transformation in the developing countries. These tasks require quick changes whereas the capacity of the Weberian model for adaptation to change is rather slow.
4. Weber's model is confined to the study of formal bureaucratic structure and fails to take notice of the informal structure of bureauracy such as informal relations, informal norms and values, an informal power hierarchy and informal power struggles.
Which of the above points make a valid criticism of the Weberian model? Select the correct answer from below:
When the price of a product was marked 40% above its cost price and was sold at a discount of 25%, the selling price of the product was Rs. 1890. Find the selling price of the product, if the marked price was 30% above the cost price and the discount was 20%.
Consider the following two tables and four queries in SQL. Book (isbn, bname), Stock (isbn, copies) Query 1: SELECT B.isbn, S.copies FROM Book B INNER JOIN Stock S ON B.isbn = S.isbn;   Query 2: SELECT B.isbn, S.copies FROM Book B LEFT OUTER JOIN Stock S ON B.isbn = S.isbn; Query 3: SELECT B.isbn, S.copies FROM Book B RIGHT OUTER JOIN Stock S ON B.isbn = S.isbn;   Query 4: SELECT B.isbn, S.copies FROM Book B FULL OUTER JOIN Stock S ON B.isbn = S.isbn;   Which one of the queries above is certain to have an output that is a superset of the outputs of the other three queries?
Among six commodities P, Q, R, S, T and U, the price of Q is 1.5 times that of T. The price of U is four times that of P. The price of S is equal to the price of R. The price of P is 3.5 times that of R. The price of T is twice the price of R. The price of P is Rs. 70. What is the price of Q?
If the selling price of a refrigerator is 26% more than its cost price and the discount offered on its marked price is 4%, then which of the following is correct? I. The ratio of its selling price to the cost price is 63 ∶ 50 II. The ratio of its cost price to the marked price is 7 ∶ 4 III. The ratio of its marked price to the cost price is 21 ∶ 16
If the selling price of a wardrobe is 54% more than its cost price and the discount offered on its marked price is 1%, then which of the following is correct? I. The ratio of its cost price to the marked price is 3 ∶ 7 II. The ratio of its cost price to the selling price is 50 ∶ 77 III. The ratio of its marked price to the cost price is 14 ∶ 9