Which of the Following Statements Is CORRECT

question 93

Multiple Choice

Which of the following statements is CORRECT?

• A) if firms x and y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.
• B) if firms x and y have the same p/e ratios, then their market-to-book ratios must also be the same.
• C) if firms x and y have the same net income, number of shares outstanding, and price per share, then their p/e ratios must also be the same.
• D) if firms x and y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
• E) if firm x's p/e ratio exceeds that of firm y, then y is likely to be less risky and also to be expected to grow at a faster rate.

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Definitions:

Facilitate Acceptance

The act of making it easier for people to welcome or approve of new ideas, changes, or innovations.

Ceremonies

are formal events or rituals conducted on special occasions, often symbolic, celebrating notable milestones or achievements within cultures, organizations, or personal lives.

Temporary Setbacks

Short-term failures or delays that hinder progress but can often be overcome with effort and resilience.

Key Position

A significant or strategic role within an organization that holds considerable influence or responsibility.