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Price/Earnings (P/E) Ratio
This is a measure of an organization investment potential. Literally, a P/E ratio is how much a share is worth per dollar of earnings. The price-earnings ratio is calculated as follows:
An industries P/E ratio depends on investors' perceptions of an organization potential. Factors such as risk, quality of management, earnings history, growth potential, and organization conditions all come into play.
State about the prices - Price level Prices are of great significance in macroeconomics as indeed they are in microeconomics. Though, in microeconomics we are more interested i
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