Which of the Following Are True Concerning the Use of Price-To-Earnings

question 11

Multiple Choice

Which of the following are true concerning the use of price-to-earnings multiples to evaluate a high-growth company?
I.They cannot be used when earnings are negative.
II.They provide insight into what drives the company's valuation.
III.They generate imprecise results when earnings are highly volatile.
IV.They account for the unique characteristics of each company in a fast-changing environment.

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

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Definitions:

Verbal Self-Control

The ability to regulate one's behavior, thoughts, and emotions through the use of language and self-talk.

Lev Vygotsky

A Soviet psychologist known for his work on cognitive development, particularly the social development theory, which emphasizes the cultural/contextual influence on cognitive growth.

Restrained

Restrained refers to being held back, controlled, or limited in some manner, whether physically, emotionally, or socially.

Inner Speech

An internal dialogue that individuals have with themselves, which can influence thinking and behavior.