Which of the Following Statements Is CORRECT

question 80

Multiple Choice

Which of the following statements is CORRECT?

• A) if a firm has the highest price/earnings ratio of any firm in its industry, then, other things held constant, this suggests that the board of directors should fire the president.
• B) if a firm has the highest market/book ratio of any firm in its industry, then, other things held constant, this suggests that the board of directors should fire the president.
• C) other things held constant, the higher a firm's expected future growth rate, the lower its p/e ratio is likely to be.
• D) the higher the market/book ratio, then, other things held constant, the higher one would expect to find the market value added (mva).
• E) if a firm has a history of high economic value added (eva) numbers each year, and if investors expect this situation to continue, then its market/book ratio and mva are both likely to be below average.

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Definitions:

False Positive

A test result that wrongly indicates the presence of a condition or attribute when it is not actually present.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to a few seconds.

Selectively Attended

The cognitive process of focusing on a particular object in the environment for a certain period, while ignoring other perceivable information.

Long-term Memory

A type of memory storage that can hold information for extended periods of time, ranging from minutes to a lifetime, encompassing a wide range of knowledge, experiences, and skills.