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:

Historically Dependent

Describes phenomena or entities whose characteristics or current state are heavily influenced by their historical development.

Racial Oppression

The systemic and discriminatory treatment of individuals based on their race that restricts their rights, freedoms, and access to resources and opportunities.

Aberration

A deviation from the norm or what is considered standard, usual, or expected.

Objective Reality

The concept of a reality that exists independently of human thoughts, perceptions, and interpretations, often contrasted with subjective reality.