Which of the Following Statements Is Correct

question 17

Multiple Choice

Which of the following statements is correct?

• A)If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.
• B)If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.
• C)If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
• D)If Firm X's P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and also to be expected to grow at a faster rate.