Which of the Following Statements Regarding the Price/earnings Ratio (P/E

question 79

Multiple Choice

Which of the following statements regarding the price/earnings ratio (P/E ratio) is false?

• A)The P/E ratio is a measure of a stock's relative price.
• B)P/E ratios should be compared among firms in the same industry.
• C)P/E ratios for most corporations have ranged between 5 and 10.
• D)A relatively low P/E ratio indicates that investors expect sluggish growth or an uncertain future.

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Definitions:

Muscle Cell

Specialized cells that make up muscle tissue, capable of contracting and generating force, essential for movement and posture.

Spindle-Shaped Cells

Cells that are tapered at both ends; commonly found in smooth muscle tissues where they help in contraction and relaxation activities.

Smooth Muscle

A type of muscle found in the walls of hollow organs like the intestines and blood vessels, characterized by its involuntary control and the ability to slowly contract and relax.

Skeletal Muscle

A type of striated muscle that is attached to bones and is under voluntary control, responsible for movement.