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:

Personal Fable

Type of thought common to adolescents in which young people believe themselves to be unique and protected from harm.

Imaginary Audience

A social psychological concept where an individual imagines and believes that multitudes of people are enthusiastically listening or watching them.

Imaginary Audience

A belief common in adolescence that one is constantly being observed and evaluated by others.

Growth Spurt

A growth spurt is a rapid increase in physical growth, typically occurring during puberty, characterized by accelerated growth in height and other bodily dimensions.