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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 902 |
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Once again, the goal of a company is to keep their ROA as high as possible, meaning that the company’s assets are being utilized to their fullest capabilities.
The last calculation to discuss is the price to earnings ratio or also called the P/E ratio. This a ratio that is used to be able to analyze the stock market’s stock value of a company...
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This a ratio that is used to be able to analyze the stock market’s stock value of a company. In order to figure our the P/E ratio it takes the current price per single share of stock and divide it by the earnings per share taken over a 12 month period of time. In other words, the P/E ratio tells an investor how much they must pay in order to get one dollar of earnings...
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