If a Firm's Price-Earnings Ratio Is Relatively Low, Then It

question 484

Multiple Choice

If a firm's price-earnings ratio is relatively low, then it might be an indication that

• A)the demand for the stock is relatively high.
• B)the supply of the stock is relatively low.
• C)people expect the firm's earnings to rise.
• D)people expect the firm's earnings to fall.

---

Definitions:

Self-Talk

The inner dialogue that a person has with themselves, which can influence their attitudes and behaviors.

Conscious Level

The degree of awareness an individual has about their thoughts, feelings, and surroundings.

Posttraumatic Growth

Posttraumatic growth is the positive psychological change experienced as a result of the struggle with highly challenging life circumstances, leading to a significant transformation in personal development.

Trauma

A deeply distressing or disturbing experience, often resulting in lasting psychological impact.