Which Method of Determining a Firm's Net Worth Divides the Market

question 58

Multiple Choice

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share,and multiplies the result by the firm's average net income for the past five years?

• A)Long- term asset method
• B)Current ratio method
• C)Price- earnings ratio method
• D)Outstanding shares method
• E)Debt/equity method

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Definitions:

Descent Cousins

Cousins who are part of the same family lineage or bloodline, emphasizing the connection through common ancestors.

Social Class

A division of a society based on social and economic status, where individuals are grouped by criteria such as occupation, income, wealth, education, and social network.

Occupation

Occupation refers to a person's regular, long-term employment or role in society, which often defines a part of their identity and social status.

Age

The length of time that a person or entity has existed.