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financial ratios


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Ratios between various items in a company's accounts and the market value of its shares. These include the price–earnings (P/E) ratio, that is the ratio of the market price to earnings per share, and the price–dividend (P/D) ratio, that is the ratio of the market price to the latest dividend paid per share. These ratios are used in comparing the merits of investing in different companies.

Subjects: Economics.


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