Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)You should be willing to pay proportionally more for a share with lower current earnings.
• B)The most common valuation multiple is the price-earnings ratio.
• C)A firm's price-earnings ratio is equal to the share price divided by its earnings per share.
• D)The intuition behind the use of the price-earnings ratio is that when you buy a share, you are in a 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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The practice of using the internet to deliver promotional marketing messages to consumers.

Deceptive

Misleading or likely to mislead or cheat; not presenting the truth completely or accurately.

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A legal order issued by a government authority or court directing a person or entity to stop a specified action.

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Digital advertisements displayed over the internet through various platforms including websites, social media, and email.