How is the net worth of firm calculated

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Reference no: EM131835137

1. What is the formula to calculate P/E ratio??

a. ?Market price per share ÷ Book value per share

b. ?Earnings available to common stockholders (EAC) ÷ Number of shares

c. ?Common dividends ÷ Number of shares

d. ?Market price per share ÷ Earnings per share

e. ?Average cost of funds × Invested capital

2. How is the net worth of a firm calculated??

a. ?Net worth = Current assets minus current liabilities

b. ?Net worth = Total assets minus current liabilities

c. ?Net worth = Total liabilities minus current assets

d. ?Net worth = Total assets minus total liabilities

e. ?Net worth = Total liabilities minus current liabilities

Reference no: EM131835137

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