Which of the Following Statements Is FALSE

question 47

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Collaborative Assortment

The selection and management of product range carried out in partnership between retailers and suppliers to optimize sales.

Supply Chain Partnership

A strategic alignment between different parties in the supply chain, aiming to improve efficiency, reduce costs, and enhance product or service quality through collaboration.

Cooperation And Trust

The collaboration and reliability between individuals or organizations, fundamental for effective partnerships and teamwork.

Bullwhip Effect

The phenomenon in supply chains where orders exhibit greater variance as one moves upstream in the chain, leading to inefficiency and excess inventory.