Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Frequency Marketing

Frequency Marketing is a strategy designed to increase consumer visits or purchases by offering rewards or incentives proportional to the frequency of shopping or patronage.

Example

A specific instance or illustration used to clarify a point, demonstrate a proposition, or provide a model for understanding complex ideas.

Variable Reinforcements

A reinforcement schedule in which rewards are given out at unpredictable intervals, which can lead to more consistent patterns of behavior.

Fixed Schedules

Time management systems where tasks, activities, or work shifts are planned at specific, unchanging times.