Which of the Following Statements Is Correct

question 17

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.

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Definitions:

Size Limits

Refers to the maximum and minimum dimensions allowable for a manufacturing part or material.

Characteristic Symbol

A symbol assigned to specific features in technical drawings or diagrams to represent the type of characteristic or tolerance specified.

Angularity

Measures the angle deviation of a specified surface or feature from a specified reference, often used in geometric dimensioning and tolerancing.

Geometric Tolerances

The permissible limits of variation in the geometry of a part, detailed in technical drawings to ensure parts are manufactured consistently.