Firms with high unsustainable earnings should have low (trailing) P/E ratio. Is this correct?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

See More Books

Question Posted: Mar 17, 2012 07:36 AM

See More Questions

Firms sell products with high costs at high prices. High selling prices increase revenues and profits. Why then should managers worry about product overcosting?
Firms with relatively high nonfinancial fixed costs are said to have a high degree of what?
Is this correct for determining the costs of retained earnings and new common stock?
Mike and Linda are a married couple who file jointly and have $100,000 of taxable income. They have three dependent children who are full-time students in 2022. Mike and Linda provided $8,000 of...
The following financial data (in thousands) were taken from recent financial statements of Staples, Inc.: 1. What is the number of times interest charges are earned for Staples in Year 3, Year 2, and...
An HR manager who hopes to substantially alter ethical conduct of an organisation is doomed to disappointment. Elaborate.
Explain the accounting for small and large stock dividends, and for stock splits.
Pan-Am Manufacturing Company prepares cost estimates for projects on which it will bid. In order to anticipate the labor cost to be included in a request to bid on a contract for 1,200,000 units that...
Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same...
General Electric (GE) disclosed the following non-GAAP reconciliation for its Industrial segment from its 2018 Form 10-K. $ illions 2018 2017 2016 GE Industrial earnings (loss) $(20,587) $(1,841)...
Can a firm have a high P/E ratio yet a low P/B ratio? How would you characterize the growth expectation for this firm?
The following numbers were calculated from the financial statements for a firm for 2009 and 2008: Calculate core return of net operating assets (core RNOA) and show how much of its change from 2008...
Pierpont Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct...
Link two articles from a trade journal in your field and discuss them in a short paper...
Evaluate vendors for supplying differentiated or specialized widgets. Review the "Supplier Scorecard Data" document and answer the questions below. 1. Discuss which supplier you will select,...
3. By keeping the leading term in the relativistic correction, the kinetic energy operator T of a relativistic electron in one dimension can be written as p 3p4 + 2m 8m3c2 where c is the speed of...
CHOOSE CORRECT OPTION How might inadequate training impact Thandiwe's ability to address classroom challenges? a. Develops effective teaching strategies b. Enhances problem solving skills and creates...
A 3.5-kg cannon on wheels is loaded with a 0.0527-kg ball. The cannon and ball are initially moving forward with a speed of 1.27 m/s. The cannon is ignited and launches a 0.0527-kg ball forward with...
According to its production schedule, Jacksonville Company estimates that 12,000 yards of polyester at a cost of $45 per yard will be needed next year. The estimated carrying cost is 30 percent of...
DEPARTMENT DATA EMPLOYEE DATA EmployeeNumber FirstName Mary Rosalie Richard George Alan 3 4 5 7 8 9 855555ES 12 13 14 15 16 17 Create the database tables in SQL or ACCESS: 18 19 20 PROJECT DATA Ken...
How can you organize multiple, related classes?
Beta Alloys made the following adjusting journal entries on December 31, 2011. Required:Classify each adjusting entry as either an accrual adjustment (A) or a cost expiration adjusting (C), and...
The following information is available for M&M Johnson, Inc.: a. The December 31, 2011, supplies inventory balance is $85,000. A count of supplies reveals that the company actually has $30,000 of...
The following information is available for Derrick Company: REQUIRED:Prepare the adjusting journal entries that gave rise to the changes indicated. T-Account Balance after Adjustments T-Account...
You have $55,000. You put 15% of your money in a stock with an expected return of 10%, $38,000 in a stock with an expected return of 18%, and the rest in a stock with an expected return of 22%. What...
Portfolio return and beta Personal Finance Problem Jamie Peters invested $ 1 1 3 , 0 0 0 to set up the following portfolio one year ago: a . Calculate the portfolio beta on the basis of the original...
. Emerson Cammack wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based...

Firms with high unsustainable earnings should have low (trailing) P/E ratio. Is this correct?

Question:

Step by Step Answer:

Yes correct Tempor...View the full answer

Financial statements

Students also viewed these Accounting questions