________ is a guide to the firm's value if it is assumed that ...

[mwit1967]

________ is a guide to the firm's value if it is assumed that investors value the earnings of a given firm in the same way they do the average firm in the industry.
 
  A) Liquidation value
  B) Book value
  C) The P/E multiple
  D) The present value of the dividends

Question 2

When pricing a zero-coupon bond, the convention is to use the semiannual pricing formula rather than the annual pricing formula.
 
  Indicate whether the statement is true or false.

[dajones82]

Answer to Question 1

C

Answer to Question 2

Answer: TRUE