Which of the Following Statements Is False

question 29

Multiple Choice

Which of the following statements is false?

• A) We can estimate the value of a firm's shares by multiplying its current earnings per share by the average P/E ratio of comparable firms.
• B) For valuation purposes, the trailing P/E ratio is generally preferred, since it is based on actual, not expected, earnings.
• C) Forward earnings are the expected earnings over the coming 12 months.
• D) Trailing earnings are the earnings over the previous 12 months.

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Definitions:

Hypnosis

An altered state of consciousness marked by enhanced focus and suggestibility, commonly utilized for healing purposes.

Unpleasant Memories

Memories that invoke negative emotions due to past traumatic or distressing experiences.

Hypnosis

A trance-like state characterized by increased focus, concentration, and suggestibility.

Incorrect Memories

Memories that are distorted or completely fabricated, often due to misinformation, suggestion, or memory blending.