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An investor divides the market price of a share by its earnings per share. That result is the:

AProperty tax ratio
BPurchase order ratio
CPrice-to-earnings ratio
DPayroll expense ratio
Answer & Solution
Correct answer: C. Price-to-earnings ratio
1. Market price sits on top. 2. Earnings per share sits below. 3. It is the price-to-earnings ratio. _Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._
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