Which of the following statements is FALSE? a We can estimate the value of a fir

Question

1. Which of the following statements is FALSE? a
   
   We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms. b
   
   For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings. c
   
   Forward earnings are the expected earnings over the coming 12 months. d
   
   Trailing earnigns are the earnings over the previous 12 months.

1. Which of the following statements is FALSE? a
   
   We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms. b
   
   For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings. c
   
   Forward earnings are the expected earnings over the coming 12 months. d
   
   Trailing earnigns are the earnings over the previous 12 months.

Which of the following statements is FALSE? a

We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms. b

For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings. c

Forward earnings are the expected earnings over the coming 12 months. d

Trailing earnigns are the earnings over the previous 12 months. Which of the following statements is FALSE? Which of the following statements is FALSE? We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms. For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings. Forward earnings are the expected earnings over the coming 12 months. Trailing earnigns are the earnings over the previous 12 months. a

We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms. b

For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings. c

Forward earnings are the expected earnings over the coming 12 months. d

Trailing earnigns are the earnings over the previous 12 months.

Explanation / Answer

a) because the price of any share is aso dependent on many factors such as sentiment of the people

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