Which of the Following Statements Is True

question 54

Multiple Choice

Which of the following statements is true?

• A)The lower the P/E ratio of a firm, the higher its future growth prospects are.
• B)The higher the future growth prospects of a firm, the higher its earnings yield will be.
• C)The higher the P/E ratio of a firm, the higher its earnings yield will be.
• D)The lower the earnings yield of a firm, the higher its future growth prospects are.

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Definitions:

Adaptation

The process of adjusting or changing to fit new conditions or environments.

Knowledge

Information, understanding, and skills that individuals acquire through experience or education; the theoretical or practical understanding of a subject.

Abilities

The skills and competences a person possesses that enable them to perform specific tasks successfully.

Skills

The ability to perform tasks effectively and efficiently, often developed through experience, training, or education.