Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

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) Comparing financial statement ratios of companies in different industries can give misleading results.
_____ 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) Conservatism produces a positive bias in a company's financial statements and thus in the ratios calculated from the financial statements.