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:

Side-effects

Secondary, often undesirable effects of a drug or medical treatment beyond the intended therapeutic effects.

Double Blind

An experimental design in which neither the participants nor the researchers conducting the test are aware of who is receiving a particular treatment, to prevent bias.

Random Assignment

A process used in experiments to assign participants to different groups using a random mechanism, ensuring each participant has an equal chance of being placed in any group.

Good Serves

Good serves refer to successful and effective service actions in games like tennis or volleyball that significantly increase the chance of scoring.