The Franchise P/E Is a Function of

question 31

Multiple Choice

The franchise P/E is a function of

• A) Relative rate of return on new business opportunities
• B) Size of superior return opportunities.
• C) Duration of earnings growth.
• D) a and b
• E) a, b and c

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Definitions:

Worksheet

A document used by accountants to organize and compile data for financial statements and other reports; often a tool for preparatory work.

Financial Statements

Formal records of the financial activities and position of a business, entity, or individual, including the income statement, balance sheet, and statement of cash flows.

Timeliness

The concept of providing information in a timeframe that is useful for decision-making purposes, often relevant in financial reporting and investing.

Efficiency

The effectiveness with which an organization utilizes resources to achieve its objectives with minimum waste.