Which of the Following Statements Is CORRECT

question 42

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.
• C) 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.
• D) If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
• E) 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:

FMVSS-121

Refers to the Federal Motor Vehicle Safety Standards regarding air brake systems, specifying design, performance, and maintenance criteria for safe operation.

Stopping Distance

The total distance a vehicle travels from the moment the brakes are applied until it comes to a complete stop, depending on speed, vehicle condition, and road conditions.

Tractor-Trailer

A vehicle comprising a towing engine (tractor) and a trailer, used primarily for transporting goods over long distances.

Spring Brake Relay Valve

A spring brake relay valve is a component in air brake systems that controls the application and release of the spring brakes, typically used in heavy-duty vehicles for parking and emergency brakes.