Multiple Choice
Which of the following is not a true statement?
A) A high price-earnings ratio means high projected earnings in the future.
B) The price-earnings ratio for a corporation must be studied over a period of time.
C) The price-earnings ratio is based on the company's dividends.
D) The price-earnings ratio for one firm may be compared to the price-earnings ratio for all firms.
E) A low price-earnings ratio indicates that a stock may be a good investment and a high price-earnings ratios may indicate that it is a poor investment.
Correct Answer:
Verified
Correct Answer:
Verified
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