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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The principle that, all else being equal, an increase in the price of a good will decrease the quantity demanded, and a decrease in price will increase the quantity demanded.

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Taxes levied by governments on individual or corporate income.

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A service that allows customers to borrow a vehicle for a certain period of time in exchange for a fee.