Which of the Following Is Not a True Statement

question 54

Multiple Choice

Which of the following is not a true statement?

• A)A high price-earnings ratio means high projected earnings in the future.
• B)The price-earnings ratio for a corporation must be studied over a period of time.
• C)The price-earnings ratio is based on the company's dividends.
• D)The price-earnings ratio for one firm may be compared to the price-earnings ratio for all firms.
• E)A low price-earnings ratio indicates that a stock may be a good investment and a high price-earnings ratios may indicate that it is a poor investment.

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