Al's Has a Price-Earnings Ratio of 18

question 17

Multiple Choice

Al's has a price-earnings ratio of 18.5.Ben's also has a price-earnings ratio of 18.5.Which one of the following statements must be true if Al's has a higher PEG ratio than Ben's?

• A)Al's has more net income than Ben's.
• B)Ben's is increasing its earnings at a faster rate than the Al's.
• C)Al's has a higher market value per share than does Ben's.
• D)Ben's has a lower market-to-book ratio than Al's.
• E)Al's has a higher net income than Ben's.

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Definitions:

Flexor Digitorum Longus

A muscle in the lower leg that helps in flexing the toes and plays a significant role in stabilizing the foot.

Fibularis Tertius

A small muscle of the lower leg that helps in the eversion of the foot and extension of the toes.

Fibularis Brevis

A muscle of the lower leg that assists in the eversion and plantar flexion of the foot.

Tibial Tuberosity

A protuberance on the tibia bone in the lower leg that serves as an attachment site for the patellar ligament.