Which of the following statements is CORRECT?
A. If a firm has the highest price/earnings ratio of any firm in its industry, then, other things held constant, this suggests that the board of directors should fire the president.
B. If a firm has the highest market/book ratio of any firm in its industry, then, other things held constant, this suggests that the board of directors should fire the president.
C. Other things held constant, the higher a firm's expected future growth rate, the lower its P/E ratio is likely to be.
D. The higher the market/book ratio, then, other things held constant, the higher one would expect to find the Market Value Added (MVA).
E. If a firm has a history of high Economic Value Added (EVA) numbers each year, and if investors expect this situation to continue, then its market/book ratio and MVA are both likely to be below average.
Answer: D
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Venture Enterprises' accountant determined the following: Common stock, $0.01 par value $50,000 Where would this item be reported on Venture's financial statements?
a. In the Stockholders' Equity section of the balance sheet b. In the Treasury Stock section of the balance sheet c. On the statement of retained earnings d. On both the balance sheet and statement of retained earnings
In eight years, Shu Company plans to receive $11,000 cash from the sale of a machine that has a $16,000 book value.YearFV of $1 at 12% FV of an ordinary annuity at 12% PV of $1 at 12% PV of an ordinary annuity at 12%1 1.120 1.000 0.893 0.893 2 1.254 2.120 0.797 1.690 3 1.405 3.374 0.712 2.402 4 1.574 4.779 0.636 3.037 5 1.762 6.353 0.567 3.605 6 1.974 8.115 0.507 4.111 If the firm is subject to a 30% income tax rate and has a 12% after-tax hurdle rate, the correct discounted net cash flow would be:
A. $3,838. B. $606. C. $5,050. D. $1,414. E. None of the answers is correct.
The F-statistic in a one-way ANOVA represents the:
a. variation between the treatments plus the variation within the treatments. b. variation within the treatments minus the variation between the treatments. c. variation between the treatments divided by the variation within the treatments. d. variation within the treatments divided by the variation between the treatments.
The ____________________ of a bond is found by dividing the bond's annual interest income by the bond's price
Fill in the blank(s) with correct word