Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A) The most common valuation multiple is the price-earnings (P/E) ratio.
• B) You should be willing to pay proportionally more for a stock with lower current earnings.
• C) A firm's P/E ratio is equal to the share price divided by its earnings per share.
• D) The intuition behind the use of the P/E ratio is that when you buy a stock, you are in sense buying the rights to the firm's future earnings and differences in the scale of firms' earnings are likely to persist.

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Definitions:

Distrusts Certain Types

A feeling of suspicion or lack of confidence in particular groups or categories of things or people.

Microaggressions

Everyday verbal, nonverbal, and environmental slights, snubs, or insults, intentional or unintentional, which communicate hostile, derogatory, or negative messages to target persons based solely upon their marginalized group membership.

Offensive Comments

Remarks that are hurtful, insulting, or intended to upset or demean someone.

Racial Slurs

Offensive or derogatory terms directed towards someone based on their race or ethnicity, often intended to demean or insult.