$10 is the bookie's expected earnings per dollar wagered
The price-to-earnings ratio, in essence, reflects the amount of money an investor may expect to invest in a firm in order to obtain $1 of that company's earnings. This is why the P/E ratio is also known as the price multiple, as it indicates how much investors are ready to pay each dollar of earnings.
Analysts want to see a lower number for the Price-to-Sales Ratio. A ratio less than one shows that investors are investing less than $1 for every $1 in revenue earned by the company.
The formula for determining a stock's price-earnings ratio is straightforward: the market value per share divided by earnings per share (EPS).
To know more about earnings per dollar follow the link:
https://brainly.com/question/23103804
#SPJ4
