The correct answer is: C. Shareholders.
Price-earnings ratio (P/E ratio) is a valuation ratio that compares a company’s stock price to its earnings per share (EPS). It is often used to determine if a stock is overvalued or undervalued. A high P/E ratio indicates that investors are willing to pay a premium for a company’s stock, while a low P/E ratio indicates that investors are not willing to pay as much for a company’s stock.
P/E ratio is useful to shareholders because it can help them to determine if a stock is a good investment. A high P/E ratio may indicate that a stock is overvalued, while a low P/E ratio may indicate that a stock is undervalued. However, it is important to note that P/E ratio is only one factor to consider when evaluating a stock. Other factors, such as a company’s financial health and growth prospects, should also be considered.
Short-term creditors are not typically interested in P/E ratio because they are concerned with the company’s ability to repay its debts in the near future. Long-term creditors may be interested in P/E ratio, but they will also consider other factors, such as the company’s financial health and growth prospects.