Which of the Following Statements Regarding the P/E Ratio Is

question 52

Multiple Choice

Which of the following statements regarding the P/E ratio is NOT true?

• A) The P/E ratio indicates how much investors are willing to pay for a stock as a multiple of current earnings.
• B) A high P/E ratio may mean that investors have pushed the price of the stock up in anticipation of higher future net income.
• C) If EPS decreases and there is no change in the market price of the stock, the P/E ratio will decrease.
• D) If the market price of the stock increases and there is no change in EPS, the P/E ratio will increase.

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Ocean currents that move away from the shore, influenced by winds, Coriolis effect, and differences in water density.

Tides

The rise and fall of sea levels caused by the gravitational forces exerted by the Moon, Sun, and rotation of the Earth.

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The process of increasing the temperature of an object, substance, or space using energy directly from the sun.

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Phenomena on the Sun's surface that appear as dark spots due to lower temperatures, often associated with magnetic activity.