Which of the following statements about the Price/Earnings ratio is not correct?
A. If EPS decreases and there is no change in the market price of the stock, the Price/Earnings ratio will decrease.
B. A high Price/Earnings ratio may mean that investors have pushed the price of the stock up in anticipation of higher future net income.
C. If the market price of the stock increases and there is no change in EPS, the Price/Earnings ratio will increase.
D. The Price/Earnings ratio indicates how much investors are willing to pay for a share of a company's stock as a multiple of current earnings.
Answer: A
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Which of the following is a perceived disadvantage of Rawls's social justice theory?
A) It allows for those in advantageous positions to suppress people in least advantageous positions. B) It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons. C) It only allocates people in advantageous positions to set up rules on morality. D) It postulates that there are no universal ethical rules to guide a person's conduct.
Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:Total machine-hours80,000Total fixed manufacturing overhead cost$ 624,000Variable manufacturing overhead per machine-hour$ 3.10 Recently, Job M598 was completed with the following characteristics:Number of units in the job60Total machine-hours300Direct materials$ 645Direct labor cost$ 9,000If the company marks up its unit product costs by 40% then the selling price for a unit in Job M598 is closest to:
A. $86.10 B. $301.35 C. $225.05 D. $321.35
A stock currently sells for $100 per share, and has earnings of $2.00 per share. What is the stock's P/E ratio?
A) 50.00 B) 25.00 C) 5.00 D) 1.00
True or False When a distribution has more values to the left and tails to the right, we say it is skewed negatively
Indicate whether the statement is true or false