[Solved] Which of the following statements is CORRECT? A)In general, if investors regard a company as being relatively risky and/or having relatively poor growth prospects, then it will have relatively high P/E and M/B ratios. B)The basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects. C)The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed. D)The market/book (M/B) ratio tells us how much investors are willing to pay for a dollar of accounting book value. In general, investors regard companies with higher M/B ratios as being more risky and/or less likely to enjoy higher future growth. E)It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets. Milky Way: The Milky Way is the galaxy that contains our Solar System, characterized by its milky luminescence, which is a band of light formed from stars that cannot be individually distinguished by the naked eye. Spiral Arm: Regions of stars that extend from the center of spiral galaxies outward, appearing as swirling and prominent features structured around a galactic core. Water Grabbing: The practice of large-scale acquisition or control of water resources by corporations, governments, or individuals, often at the expense of local communities and ecosystems. Transboundary Resource: Natural resources that cross or are located on the borders between countries, often leading to conflicts or the need for cooperative management agreements.