A High Price/earnings (P/E)ratio Suggests

question 13

Multiple Choice

A high price/earnings (P/E) ratio suggests:

• A) Shareholders are pessimistic about future growth prospects
• B) Shareholders are optimistic about future growth prospects
• C) Earnings per share is high relative to the share price
• D) Statements B and C are correct

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Definitions:

Mating

The pairing of individuals for reproductive purposes, involving the selection of partners and often complex courtship behaviors.

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring, driving the evolution of species.

Sharp Hearing

The ability to perceive and distinguish sounds with greater accuracy and sensitivity than average.

Webbed Feet

A characteristic of some animals where the toes are connected by a membrane, aiding in swimming.