Which of the following is true regarding the price-earnings ratio?
a. price-earnings ratio = market price per share/earnings per share
b. tables of stock prices and financial periodicals often present price-earnings ratios
c. P/E ratios should use normal, ongoing earnings data in the denominator
d. the analyst must interpret the published P/E ratios cautiously if the firm's net income includes unusual, nonrecurring gains and losses
e. all of the above
E
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The Pacific division has the following income statement for the last quarter: The company's average operating assets for the period were $270,000. The company requires a minimum rate of return of 13%. What was the division's margin?
a. 10.71% b. 10.23% c. 25% d. 12.36% e. None of the answers are correct.
One morning, Roche agrees to lend his bike to Shelley, who promises to return it in the evening. This is? A) a constructive bailment
B) an involuntary bailment. C) an express bailment. D) no bailment.
The American Red Cross is a not-for-profit organization that uses volunteer workers the same way a for-profit business uses paid employees. To encourage volunteers to continue to give their time, the Red Cross thanks volunteers with public recognition. This would be an example of
A. scientific management. B. piece-rate scaling. C. Theory X. D. positive reinforcement. E. an ineffective reward system.
When computing the return on equity, retained earnings should be excluded from the average total stockholders' equity.
Answer the following statement true (T) or false (F)