Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)We can estimate the value of a firm's shares by multiplying its current earnings per share by the average P/E ratio of comparable firms.
• B)For valuation purposes,the trailing P/E ratio is generally preferred,since it is based on actual not expected earnings.
• C)Forward earnings are the expected earnings over the coming 12 months.
• D)Trailing earnings are the earnings over the previous 12 months.

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Definitions:

Canadian Medical Association

A national, voluntary association of physicians that advocates on behalf of its members and the public for access to high-quality health care, and provides leadership and guidance to physicians.

Multinational Corporation

A large company that operates and provides goods or services in multiple countries beyond its original country of establishment, often exercising significant economic and political influence globally.

Branch Plant

A factory or office operated in a country by a foreign company, often perceived as a subordinate extension of its parent company.

Collateral Labour Markets

Secondary or peripheral segments of the labour market characterized by lower job security, lower wages, and less formal employment structures.