Which of the Following Statements Is CORRECT

question 80

Multiple Choice

Which of the following statements is CORRECT?

• A) If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.
• B) If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.
• C) If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.
• D) If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
• E) If Firm X's P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and also to be expected to grow at a faster rate.

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Definitions:

Role Construct Repertory

A psychological tool or test that helps to reveal how a person construes or interprets the significant people in their life, based on the theory of personal constructs.

Main Contribution

Denotes the primary or most significant input or impact made by an individual, idea, or invention in any field or area.

Assessment

The process of evaluating or estimating the nature, ability, or quality of someone or something, often used in educational, psychological, or organizational settings.

REP Test

Role Construct Repertory Test; a psychological test for assessing an individual's personal construct system, used to understand how one perceives and evaluates their world.