Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)We can estimate the value of a firm's shares by multiplying its current earnings per share by the average P/E ratio of comparable firms.
• B)For valuation purposes,the trailing P/E ratio is generally preferred,since it is based on actual not expected earnings.
• C)Forward earnings are the expected earnings over the coming 12 months.
• D)Trailing earnings are the earnings over the previous 12 months.

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Definitions:

Athena Parthenos

A monumental statue of the goddess Athena housed in the Parthenon in Athens, crafted by Phidias in the 5th century BCE, symbolizing wisdom, warfare, and crafts, and renowned for its gold and ivory construction.

Hippodamian Planning

A grid-like urban planning method attributed to the ancient Greek architect Hippodamus, emphasizing order and efficiency.

Priene

An ancient Greek city located in modern-day Turkey, known for its well-preserved ruins and as an example of classical Greek urban planning.

Triglyphs

Architectural elements used in the frieze of Doric order temples, consisting of three vertical grooves which alternate with metopes.