Given Below Is the Scatter Plot of the Price/earnings Ratio

question 75

True/False

Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 Australian companies.There appears to be a positive relationship between price/earnings ratio and earnings per share.

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Definitions:

Dividends Per Share

The amount of dividend a company pays out to its shareholders for each share owned.

Par Value

A dollar amount assigned to each share of stock.

Clean Audit Opinion

An auditor's statement that a company's financial statements are accurate, fair, and in accordance with accounting standards.

Unmodified Opinion

An auditor's report that concludes the financial statements of an entity are fairly and appropriately presented, without any identified exceptions.