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Question(s) / Instruction(s):

Which of the following is the formula to compute the price/earnings ratio? 

a)            The formula is dividend per share of common stock/ market price per share of common stock.

b)            The formula is net income/net shares of common stock.

c)            The formula is market price per share of common stock/ earnings per share.

d)            The formula is issued stock – treasury stock.

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