Author Question: XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that ... (Read 26 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557
XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that
 
  A) investors expect XYZ's earnings to grow faster than EFG's earnings.
  B) investors believe XYZ stock is overvalued.
  C) investors believe that for the same level of earnings growth, XYZ is a higher risk company.
  D) XYZ's earnings per share are twice the earnings per share of EFG.

Question 2

Accounting supports financial managers by providing all of the following EXCEPT:
 
  A) identifying relevant data related to the activities of the firm.
  B) presenting data in an agreed-upon and standardized form known as generally accepted accounting practices.
  C) summarizing the firm's economic activity in the form of financial statements.
  D) generating revenue for the firm.


ergserg

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

For a complete list of videos, visit our video library