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:

Fixed Traits

Characteristics or attributes of an individual that are seen as permanent and unchangeable.

Perceived Helplessness

The belief that one has no control over their environment and outcomes, leading to a lack of effort to change or improve situations.

Time Course

The sequence of events or phases that something undergoes over a period.

Dispositional Attribution

The process of attributing behavior to internal factors, such as personality traits, beliefs, or attitudes.