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johnpaech johnpaech
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Posts: 1098
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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:
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EgorGruzdevEgorGruzdev
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Posts: 422
6 years ago
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johnpaech Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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This site is awesome
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Correct Slight Smile TY
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