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Options
- A
Earnings per share (EPS) × Current price of stock
- B
Earnings per share (EPS) / Current price of stock
-
Current price of stock / Earnings per share (EPS)
Correct answer
- D
Current price of stock × Earnings per share (EPS)
Why this is the answer
P/E = Market Price / EPS, showing what investors pay per unit of earnings. Other options misrepresent the formula.
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