Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)The most common valuation multiple is the price-earnings (P/E)ratio.
• B)You should be willing to pay proportionally more for a stock with lower current earnings.
• C)A firm's P/E ratio is equal to the share price divided by its earnings per share.
• D)The intuition behind the use of the P/E ratio is that when you buy a stock,you are in sense buying the rights to the firm's future earnings and differences in the scale of the firms' earnings are likely to persist.

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Definitions:

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An enhanced version of Wi-Fi that uses lower frequency bands to offer longer range and penetration through obstacles.

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A type of computer network that uses wireless data connections between network nodes instead of wired connections.

5G Technology

The fifth generation of mobile network technology, offering higher speed, reduced latency, and the capacity to connect more devices simultaneously than its predecessors.