Which of the Following Statements Is CORRECT

question 91

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.

---

Definitions:

Clear Liquid Diet

A diet consisting only of transparent liquids without any solid foods, recommended for medical reasons to rest the stomach or intestines.

Gelatin

A translucent, colorless, flavorless food ingredient derived from collagen that is commonly used in food products, medications, and cosmetic manufacturing.

Nutritional Status

An assessment of the body's dietary intake and nutrient levels, crucial for maintaining health and preventing diseases.

Prealbumin

A protein found in the blood that is an indicator of nutritional status and can help assess the risk of malnutrition.