EBK ESSENTIALS OF INVESTMENTS
EBK ESSENTIALS OF INVESTMENTS
10th Edition
ISBN: 8220102800267
Author: Bodie
Publisher: YUZU
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Chapter 13, Problem 2CP
Summary Introduction

(A)

P/E Ratio:

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.

P/B Ratio:

Price/book value ratio is an investment valuation ratio used by investors or finance providers to compare market value of a company's shares to its book value (Shareholder Equity). This ratio indicates how much shareholders are contributing for a company's net assets.

Summary Introduction

(B)

Definition of Dividend Discount Model: The dividend discount model (DDM) is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all its future dividend payments, discounted back to their present value.

Summary Introduction

(C)

Definition of Dividend Discount Model: The dividend discount model (DDM) is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all its future dividend payments, discounted back to their present value.

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Chapter 13 Solutions

EBK ESSENTIALS OF INVESTMENTS

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