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Business, 18.04.2020 00:44 NatsuDDW

Which of the following statements is FALSE?
A. The most common valuation multiple is the priceminusearnings ratio.
B. A firm's priceminusearnings ratio is equal to the share price divided by its earnings per share.
C. The intuition behind the use of the priceminusearnings ratio is that when you buy a stock, you are in a sense buying the rights to the firm's future earnings, and differences in the scale of firms' earnings are likely to persist.
D. You should be willing to pay proportionally more for a stock with lower current earnings.

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Which of the following statements is FALSE?
A. The most common valuation multiple is the price...

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