Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
johnpaech johnpaech
wrote...
Go to Answer
Posts: 1098
Rep: 7 0
6 years ago
Which of the following statements is FALSE?
A) The most common valuation multiple is the price-earnings (P/E) ratio.
B) You should be willing to pay proportionally more for a stock with lower current earnings.
C) A firm's P/E ratio is equal to the share price divided by its earnings per share.
D) The intuition behind the use of the P/E ratio is that when you buy a stock, you are in sense buying the rights to the firm's future earnings and differences in the scale of the firms' earnings are likely to persist.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 79 times
1 Reply
Replies
Answer verified by a subject expert
EgorGruzdevEgorGruzdev
wrote...
#1
Posts: 422
Rep: 16 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

johnpaech Author
wrote...

6 years ago
You make an excellent tutor!
yen
wrote...

Yesterday
Good timing, thanks!
patyfeitosa
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1181 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 4427
  
 160
  
 1653
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Should Ph.D.'s be addressed as doctors?