Which One of the Following Is Most Apt to Cause

question 27

Multiple Choice

Which one of the following is most apt to cause a profitable,stable firm to have a higher price-earnings ratio?

• A)Slow industry outlook
• B)Very low current earnings
• C)Low market share
• D)Low prospect of firm growth
• E)Low investor opinion of firm

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific accounting period.

E-Commerce

The use of the Internet for performing business transactions.

Subsidiary Ledgers

Detailed records that support summary-level data contained in the general ledger, such as accounts receivable and accounts payable ledgers.

General Ledger

A complete record of all financial transactions over the life of a company.