Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)The most common valuation multiple is the price-earnings (P/E)ratio.
• B)You should be willing to pay proportionally more for a stock with lower current earnings.
• C)A firm's P/E ratio is equal to the share price divided by its earnings per share.
• D)The intuition behind the use of the P/E ratio is that when you buy a stock,you are in a sense buying the rights to the firm's future earnings and differences in the scale of the firms' earnings are likely to persist.

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Definitions:

Hypertension

A condition characterized by consistently high blood pressure levels, often leading to serious health risks such as heart disease and stroke.

Dryness

A condition characterized by a lack of moisture in an area of the body, commonly affecting the skin, eyes, or mouth.

Nasal Septum

The cartilage and bone that divides the nasal cavity into two nostrils, which can be deviated or straight.

Speculum

A medical instrument used to dilate an orifice or cavity for examination purposes, such as during a gynecological exam.