1. What is the formula to calculate P/E ratio??
a. ?Market price per share ÷ Book value per share
b. ?Earnings available to common stockholders (EAC) ÷ Number of shares
c. ?Common dividends ÷ Number of shares
d. ?Market price per share ÷ Earnings per share
e. ?Average cost of funds × Invested capital
2. How is the net worth of a firm calculated??
a. ?Net worth = Current assets minus current liabilities
b. ?Net worth = Total assets minus current liabilities
c. ?Net worth = Total liabilities minus current assets
d. ?Net worth = Total assets minus total liabilities
e. ?Net worth = Total liabilities minus current liabilities