A Low Price-Earnings Ratio Suggests That Investors Anticipate That the Business's
A low price-earnings ratio suggests that investors anticipate that the business's earnings will increase in future periods.
Horizontal analysis of financial statements may be accomplished through:
A) placing statement items on an after-tax basis.
B) computing net income as a percentage of sales.
C) computing both earnings per share and the price-earnings ratio.
D) trend percentages.
The gross margin percentage is most likely to be used to assess:
A) how quickly accounts receivables can be collected.
B) how quickly inventories are sold.
C) the efficiency of administrative departments.
D) the overall profitability of the company's products.
Earnings per share of common stock will immediately increase as a result of:
A) the sale of additional shares of common stock by the company.
B) an increase in the dividends paid to common shareholders by the company.
C) an increase in the company's net income.
D) the issuance of bonds by the company to finance construction of new buildings.