Which of the Following Statements Is Most Correct

question 88

Multiple Choice

Which of the following statements is most correct?

• A) If Firms A and B have the same level of earnings per share, and the same market to book ratio, they must have the same price earnings ratio.
• B) Firms A and B have the same level of net income, taxes paid, and total assets. If Firm A has a higher interest expense, its basic earnings power ratio (BEP) must be greater than that of Firm B.
• C) Firms A and B have the same level of net income. If Firm A has a higher interest expense, its return on equity (ROE) must be greater than that of Firm B.
• D) All of the answers above are correct.
• E) None of the answers above is correct.

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Definitions:

Geographic

Relating to the physical features, climate, or population distribution of a specific area or location.

Social Footprints

The trail of information and interactions one leaves on social media platforms, representing their online presence and activities.

Digital Identity

The online presence of an individual or organization, encompassing all the digital information and attributes associated with them.

Social Impressions

The number of times content is displayed on social media, regardless of clicks or engagement, providing insight into the reach of the content.