Which of the Following Statements Is CORRECT

question 24

Multiple Choice

Which of the following statements is CORRECT?

• A)If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.
• B)If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.
• C)If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
• D)If Firm X's P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and also to be expected to grow at a faster rate.
• E)If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.

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Definitions:

Sample Median

The middle value in a sorted list of numbers from a selected sample, which divides the data into two equal halves.

Sample Mode

The value that appears most frequently in a data sample, representing the most common outcome.

Interquartile Range

A measure of variability, calculated by subtracting the first quartile from the third quartile, representing the middle 50% of the data.

Box Plot

A graphical representation of data that shows the median, quartiles, and outliers, providing a visual summary of the distribution.