The Ratio of the Value of a Firm to Its

question 42

Multiple Choice

The ratio of the value of a firm to its annual earnings is called

• A)unappropriated profit.
• B)accumulated earnings.
• C)retained earnings.
• D)the earnings multiple.

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Definitions:

Certify

To officially recognize, attest, or confirm something as true, accurate, or within a set of standards.

Heirs

Individuals legally entitled to inherit a deceased person's assets under statutory or testamentary succession laws.

Stop-payment Order

A request made to a bank by an account holder to not pay a check or payment that has been issued but not yet processed.

Defective

Refers to a flaw or imperfection in a product or service that makes it unsafe or unsuitable for its intended use.