True concerning the price-earnings ratio

Assignment Help Financial Management

Reference no: EM131185531

Which one of the following statements is true concerning the price-earnings (PE) ratio? a) PE ratios are unaffected by the accounting methods employed by a firm. b) The PE ratio is classified as a profitability ratio. c) The PE ratio is a constant value for each firm. d) A high PE ratio may indicate that a firm is expected to grow significantly. e) A PE ratio of 16 indicates that investors are willing to pay $1 for every $16 of current earnings.

Reference no: EM131185531

Questions Cloud

What is a muslim theological school : What is a Muslim theological school where the history of Islam and the interpretation of the Quran are taught?

Team of restores found in the basement of medici chapel : Read Art News: "The Lost Drawings of Michelangelo" on pages 74 & 75 of your textbook and answer the following questions: Discuss and explain what the team of restores found in the basement of the Medici Chapel?

What is the equivalent present worth for the investment : A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 7% less than the previous year’s return. If money is worth 5%, what is the equivalent present wo..

Changing requirements for financial statements : Governments around the globe have adopted localized regulations and laws pertaining to the reporting of financial statements. However, as a global economy evolves, standardization of these reports is becoming increasingly important.

True concerning the price-earnings ratio : Which one of the following statements is true concerning the price-earnings (PE) ratio?

Designing distributed and internet systems : Businesses and organizations are focusing on developing Internet systems to provide value to their customers and staff. There are many software technologies available to internet systems development teams including; SOAP, HTML, JSON, XML, CSS, AS..

Write a letter of instruction to one of your customers : Write a letter of instruction to one of your customers indicating the reasons that would to him not being awarded a sewing machine on credit due to his former credit default history with many other firms.

Course-human resource management foundations : Note: Answer the following in at least 200 words for each question. Answers should be substantive, professional like as graduate student, and plagiarism free. Write in-text citation and references in APA style. Wikipedia and other websites doesn..

Use accounts receivable financing or factoring : How could Blades use accounts receivable financing or factoring, considering that it does not currently have accounts receivable in Thailand? If Blades uses a Thai bank to obtain this financing, how do you think the fact that Blades does not have rec..

User Account

All Pages