Indicate Whether Each of the Following Items Is True or False

Short Answer

Indicate whether each of the following items is true or false.
_____ a) Many successful corporations do not pay dividends to their stockholders.
_____ b) Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock.
_____ c) The price-earnings (P/E) ratio is computed by dividing the market price per share by the earnings per share.
_____ d) As a general rule, the higher the P/E ratio, the greater is the optimism for future growth of the corporation.
_____ e) The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.