Which of the Following Is NOT a Positive Attribute of the Price-Earnings

question 14

Multiple Choice

Which of the following is NOT a positive attribute of the price-earnings multiple valuation model?

• A)It is easy to use.
• B)It implicitly assumes that comparable firms are already fairly pried in the market place.
• C)It is forward-looking.
• D)It is based on relative market measures rather than book measures.

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Definitions:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Bacterium

A large domain of prokaryotic microorganisms, typically a few micrometers in length, which exist in various shapes and can be found in almost every habitat on Earth.

Tuskegee Study

A notorious and unethical clinical study conducted by the U.S. Public Health Service studying the progression of untreated syphilis in African American men.

Subjects

Individuals who participate in a study, experiment, or any form of research, providing data for analysis.