The Forward Price-Earning Ratio Is Based on

question 42

Multiple Choice

The forward price-earning ratio is based on

• A) the expected earnings over the coming 12 months and predicted share price in the next 12 months.
• B) the earnings in the previous 12 months and predicted share price in the next 12 months.
• C) the expected earnings over the coming 12 months and current share price.
• D) the previous earnings in the past 12 months and the current share price.

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Definitions:

Functionalists

A perspective in sociology and psychology that emphasizes the importance of understanding the purpose or function of behavior and social institutions.

Organism

A living entity capable of growth, reproduction, and response to stimuli.

Structuralists

Psychologists who analyze the basic elements of thoughts and sensations to understand the structure of the mind.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.