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Note the following definitions: -Price' is the firm's share price; -Earnings' is the firm's total earnings; -Shares' is the total number of shares; -'EPS is
Note the following definitions: -"Price' is the firm's share price; -"Earnings' is the firm's total earnings; -"Shares' is the total number of shares; -'EPS is earnings per share, which equals total earnings divided by total number of shares; -'Market cap' is the equity market capitalisation, which equals share price multiplied by the total number of shares Finance terminology is often inexact. The PE or 'price to earnings' ratio would be better named if it was called the Select one: a. Earnings to EPS ratio. b. Market cap to shares ratio. c. Market cap to earnings ratio. d. EPS to shares ratio. e. Price to shares ratio. Let the book value balance sheet be represented by these symbols: A = L + OE Let the market value balance sheet be represented by these symbols: V = D + E When finding the WACC, which equity-to-assets ratio (weight in equity) should ideally be input into the WACC formula? Select one: a. OE/A b. E/V OC. OE/V d. E/A
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