Which of the Following Statements Is False

question 86

Multiple Choice

Which of the following statements is false?

• A) P/E ratios are widely reported in the financial press and they are very easy to interpret.
• B) As the value of the dividend growth rate rises, the P/E ratio falls.
• C) A firm with a higher P/E ratio always has greater growth prospects than a firm with a lower P/E ratio.
• D) All of the above statements are false.
• E) Only (b) and (c) are false

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Definitions:

Clarify

To make a statement or situation less confused and more comprehensible.

Obligations

Duties or commitments imposed by law, contract, or a sense of moral responsibility.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize laws across the states.

Identified

Recognized or distinguished as being a particular entity or belonging to a specific category or group.