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:

Target REDcard

A branded payment card offered by Target Corporation, providing users with discounts and benefits when shopping at Target stores or online.

Considerable Assortment

A large variety of products or services that a business offers, ensuring that consumer preferences and needs are met.

Beauty and Personal Care

Products and services aimed at enhancing physical appearance and maintaining personal hygiene.

Intertype Competition

Competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.