Indicate Whether Each of the Following Statements Is True or False

question 129

Short Answer

Indicate whether each of the following statements is true or false.
1. The price-earnings ratio is computed by dividing the market price per share by the earnings per share
2. Many successful corporations do not pay dividends to their stockholders
3. Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock
4. The number of shares to purchase in order to attain significant influence over the operations of a corporation can readily be determined from the financial statements
5. As a general rule, the higher the P/E Ratio, the greater is the optimism for future growth of the corporation

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Definitions:

Dred Scott Decision

A landmark 1857 Supreme Court case that held African Americans, whether enslaved or free, could not be American citizens and therefore had no standing to sue in federal court, and that the federal government had no power to regulate slavery in the federal territories acquired after the creation of the United States.

James McCune Smith

The first African American to hold a medical degree and an influential abolitionist and author in the 19th century America.

John McLean

A prominent figure in U.S. history, often associated with his role as a justice on the Supreme Court or his contributions to American political and legal systems.