Indicate Whether Each of the Following Statements About Financial Statement

True/False

Indicate whether each of the following statements about financial statement analysis is true or false.________ a)The value of a corporation's price-earnings ratio indicates how optimistic investors are about a company's growth potential.________ b)The dividend yield ratio indicates the percentage of a company's net income that it paid out in dividends.________ c)Conservatism produces a positive bias in a company's financial statements and thus in the ratios calculated from the financial statements.________ d)Changes in general economic conditions (such as rate of inflation)can cause the values for a company's financial statement ratios to change from one year to the next.________ e)Comparing financial statement ratios of companies in different industries can give misleading results.