A P/E Ratio Is Calculated in the Middle of the Accounting

question 13

Multiple Choice

A P/E ratio is calculated in the middle of the accounting year.For a given share price,the company could use the most recent annual EPS,or it could use the total of the most recent four quarterly EPS numbers.Which of the following statements is not true?

• A)The ratio will be larger if the most recent annual EPS is used when earnings are falling.
• B)The ratio will be smaller if the EPS for the last four quarters are used when earnings are rising.
• C)The ratio will be smaller if the most recent annual EPS is used when earnings are falling.
• D)The ratio will be larger if the EPS for the last four quarters are used when earnings are falling

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Definitions:

Operon

A functioning unit of genomic DNA containing a cluster of genes under the control of a single regulatory signal or promoter.

Regulatory Sequence

is a segment of DNA where regulatory proteins bind to control gene expression by turning genes on or off.

Repressor

A protein that binds to specific DNA sequences to prevent the transcription of genetic information from DNA to messenger RNA.

Metastasis

Spread of cancer from the place of origin throughout the body; caused by the ability of cancer cells to migrate and invade tissues.