Multiple Choice
Which of the following statements regarding the price/earnings ratio is incorrect?
A) The price/earnings ratio represents the market price of one share of common stock.
B) A price/earnings ratio of 9.2 implies that the company's stock is selling at 9.2 times one year's earnings per share.
C) A higher price/earnings ratio signifies a higher return on investment.
D) The price/earnings ratio is most useful when comparing one company to another.
Correct Answer:
Verified
Correct Answer:
Verified
Q186: Which of the following is a reason
Q187: Which of the following occurs when a
Q188: Declaring and paying dividends causes an increase
Q189: Cash dividends and treasury stock purchases _.<br>A)
Q190: A net loss for the year decreases
Q192: These independent companies had the following transactions:<br>a.Long
Q193: When 1000 shares of $3 stated value
Q194: Which of the following is NOT a
Q195: A memorandum entry is an entry in
Q196: For accounting purposes,par value stock is treated