Indicate Whether Each of the Following Items Is True or False

question 39

Short Answer

Indicate whether each of the following items is true or false.
_____ a)Many successful corporations do not pay dividends to their stockholders.
_____ b)Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock.
_____ c)The price-earnings (P/E)ratio is computed by dividing the earnings per share by the market price per share.
_____ d)As a general rule,the higher the P/E ratio,the greater is the optimism for future growth of the corporation.
_____ e)The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.