The P/E Ratio That Is Based on a Firm's Financial

Multiple Choice

The P/E ratio that is based on a firm's financial statements and reported in the newspaper stock listings is different from the P/E ratio derived from the dividend discount model (DDM) because

A) the DDM uses a different price in the numerator.
B) the DDM uses different earnings measures in the denominator.
C) the prices reported are not accurate.
D) the people who construct the ratio from financial statements have inside information.