Which of the Following Statements Is FALSE

question 38

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:

Replications

The process of repeating research studies to verify or refute the findings of the original study.

Obedience Study

A research area in psychology that examines how individuals comply with authority, often highlighted by Stanley Milgram's experiments.

Components of Attitudes

Consist of cognitive (thoughts), affective (feelings), and behavioral (actions) elements that describe how and why people feel the way they do about various subjects.

Favorable Reaction

Refers to a positive or approving response to a situation, action, or information.