Which of the Following Statements Is FALSE

question 29

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 price-earnings ratio of comparable firms.
• B) For valuation purposes, the trailing price-earnings 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:

Social Media

Digital platforms and technologies that enable users to create, share content, and participate in social networking.

Dynamic Effect

Pertains to the impact of time-related changes on systems or processes, often used in economics or physics to analyze how variables evolve.

Network Effect

The phenomenon whereby increased numbers of people or participants improve the value of a good or service.

Corporate Blog

An online platform used by companies to communicate directly with their audience, providing insights, news, and updates.