CHAPTER 7 QUIZ 36 TO 40
36. Mathematically, the price-earnings ratio (P/E) is simply the price per share divided
by earnings per share
37. All things being equal, the less debt that a firm has, the more likely it is to be highly
valued in the marketplace.
38. History shows that as inflation increases, price earnings ratios increase along with
inflation.
39. In general, if the market perceives that the direction of interest rates and inflation is
down, this perception will have a positive effect on price earning ratios
40. It is thought that historical growth rates have more impact on an individual
company's P/E ratio than expected future growth rate
USA 
India