INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 163

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-The [higher | lower] the PE ratio,the less confidence investors are said to have in the corporation.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Cash Proceeds

The total amount of cash received from transactions, sales, or during a specific period.

Lease Financing

A method of financing where an entity uses leased property or equipment for its operations in exchange for periodic payments.

Taxable Income

The amount of income that is subject to taxation, after all deductions and exemptions are applied.

Pension Plan

A financial program set by an employer to provide retirement income to employees.