Business Vocabulary
Q1
The idea of the price-earnings ..... is that it tells you how many years you would have to wait to get your money back on your investment; if, for example: Goodco's current share price is 1.08 and the EPS is 6p, its P/E is 18 - this means that if you buy a share, and its EPS stays at 6p, you will 'get your money back' over 18 years.
(*) indicator
(*) percentage
(*) quotient
(*) ratio
