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

question 46

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 this number by the firm's average net income for the past five years?

• A) Debt/Equity Method
• B) Current Ratio Method
• C) Price-Earnings Ratio Method
• D) Long-term Asset Method
• E) Outstanding Shares Method

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Definitions:

Variable Ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, promoting high and steady response rates.

Fixed Interval

A schedule of reinforcement where a response is rewarded only after a specified amount of time has elapsed, in behavior studies.

Punishment by Removal

A behavior modification technique involving the withdrawal of a desirable stimulus to decrease the likelihood of a behavior being repeated.

Telephone Privileges

A system or policy allowing individuals access to use telephones under specific conditions, often used in contexts like prisons, hospitals, or schools.