Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A) The most common valuation multiple is the price-earnings (P/E) ratio.
• B) You should be willing to pay proportionally more for a stock with lower current earnings.
• C) A firm's P/E ratio is equal to the share price divided by its earnings per share.
• D) The intuition behind the use of the P/E ratio is that when you buy a stock, you are in sense buying the rights to the firm's future earnings and differences in the scale of firms' earnings are likely to persist.

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Definitions:

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, water, and power systems.

Telemedicine

The use of technology to transmit electronic medical data about clients to persons at distant locations.

Remote Practice

The provision of professional services or guidance from a distance, often utilizing digital communication technology.

Electronic Medical Data

Digital versions of patients' paper charts, health history, and other health information, accessible to authorized healthcare professionals.