The P/E Ratio Is Not Useful When the Firm's ________

question 59

Multiple Choice

The P/E ratio is not useful when the firm's ________ are negative.In this case,it is common to look at the firm's ________ relative to sales.

• A) operating earnings; enterprise value
• B) net earnings; enterprise value
• C) operating earnings; market value
• D) net earnings; market value

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Definitions:

Secondary Cell

A type of electrical battery that can be recharged after discharge, such as a lithium-ion battery.

LeClanché Cell

An early type of wet cell battery consisting of a zinc anode, a manganese dioxide cathode, and an electrolyte of ammonium chloride.

Carbon-Zinc

A type of battery chemistry characterized by the use of carbon and zinc as the electrode materials, often used in household batteries.

Alkaline

A type of battery chemistry that is based on the reaction between zinc and manganese dioxide, characterized by high energy density.