ABC Corporation and DEF Corporation Operate in the Same Industry

question 37

Multiple Choice

ABC Corporation and DEF Corporation operate in the same industry. ABC has a PE ratio that is 50% higher than DEF Corporation. Which of the following accounts for some of the difference in the observed PE ratios?

I. ABC uses more conservative accounting principles.
II. ABC has a higher cost of equity capital.
III. ABC has higher expected future growth.
IV. DEF uses FIFO and ABC uses LIFO.

• A)I, II, III, and IV
• B)I, III, and IV
• C)I and III
• D)II, III, and IV

Understand competency-focused prevention strategies and their applications.

Learn the terminology and principles of psychoanalytic theory.

Gain insight into the therapeutic goals and underlying assumptions of various therapy approaches.

Differentiate between the main types of therapy and their specific techniques.

---

Definitions:

Republican National Convention

A political convention held every four years by the Republican Party of the United States to nominate a candidate for President and Vice President and adopt the party's platform.

Law and Order

A principle of governance centered on legal constraint, enforcement of law, and the maintenance of public order.

Hart-Celler Act

The Immigration and Nationality Act of 1965, which abolished national-origins quotas and significantly changed American immigration policy.