Multiple Choice
A high price/earnings (P/E) ratio suggests:
A) Shareholders are pessimistic about future growth prospects
B) Shareholders are optimistic about future growth prospects
C) Earnings per share is high relative to the share price
D) Statements B and C are correct
Correct Answer:

Verified
Correct Answer:
Verified
Q8: One way to improve return on capital
Q9: If a supplier was interested in whether
Q10: Which of the following rations considers the
Q11: If a company reported a profit for
Q12: The following information is from the
Q14: The gearing ratio relates long-term borrowing to
Q15: If dividend per share remained the same
Q16: The return on capital employed (ROCE)shows how
Q17: The following information is from the
Q18: Financial strength/solvency ratios include:<br>A) Return on shareholders