Which of the Following Factors Do Not Influence the Firm's

question 18

Multiple Choice

Which of the following factors do not influence the firm's P/E ratio?

• A) Past earnings.
• B) Shares outstanding.
• C) Volatility in performance.
• D) None of these.

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Definitions:

Disposed

This refers to the act of getting rid of something, often used in the context of assets that have been sold or removed from the books.

Discarding

The process of getting rid of something no longer useful or required, often in the context of inventory or asset management.

Revenue Expenditures

Costs that are expensed in the current period and not capitalized; they are for maintaining the earning capacity of existing assets rather than for new assets.

Income Statement Expenditures

These are expenses reported on the income statement, including costs associated with the operations of a business, such as cost of goods sold, administrative expenses, and interest on debt.