The PEG Ratio Adjusts the P/E Ratio to Allow for the Fact

question 186

True/False

The PEG ratio adjusts the P/E ratio to allow for the fact that a company may be experiencing rapid growth.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable which may not be collectible.

Specific Receivable

A receivable account that is clearly identified and attributed to a specific source, such as an individual customer or entity.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.