Which of the Following Are Properties That Should Lead to Firms

question 8

Multiple Choice

Which of the following are properties that should lead to firms having higher value in the stock market?
I.Higher P/E.
II.First-in,first-out (FIFO ) accounting.
III.Higher growth.
IV.ROIC greater than the cost of capital.

• A)I and II only.
• B)I,II,and III only.
• C)III and IV only.
• D)II,III,and IV only

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Definitions:

Scatter Diagram

A scatter diagram, also known as a scatter plot, is a type of graph used in statistics to display values for typically two variables for a set of data. The data is displayed as a collection of points, each representing the value of one variable determining the position on the horizontal axis and the value of the other variable determining the position on the vertical axis.

Sunshine

The direct light emitted by the sun, contributing to daylight and warmth experienced on the Earth's surface.

Melanoma

A serious form of skin cancer that begins in cells known as melanocytes, which control the pigment in your skin.

Least Squares Regression

A method for fitting a regression line to a dataset by minimizing the sum of the squares of the vertical deviations from each data point to the line.