Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

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

---

Definitions:

Excel

A spreadsheet program developed by Microsoft that allows users to organize, format, and calculate data with formulas using a system of cells arranged in rows and columns.

Current Page

Refers to the specific page being viewed or edited in a document, presentation, or web browser at a given time.

Total Number

The sum or aggregate count of individuals, items, or units in a particular set or group.

Access

A database management system from Microsoft that combines the relational Microsoft Jet Database Engine with a graphical user interface and software-development tools.