Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Emotional Appeals

A persuasive technique that targets the emotions of the audience to create a connection or elicit a response.

Authority Figure

An individual who holds power or control in a particular context, often able to influence others' actions or beliefs.

Obedience

The act of following the directives or commands of authorities or social norms, often studied in the context of how people can be influenced or controlled by others.

Milgram's Study

An influential experiment conducted by Stanley Milgram in the 1960s to investigate obedience to authority, demonstrating that people are willing to administer what they believe are painful electric shocks to another person when instructed by an authority figure.