One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may

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One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be financially weak. What criterion might an analyst include to avoid inadvertently selecting weak companies?

A. Net income less than zero 

B. Debt-to-total assets ratio below a certain cutoff point 

C. Current-year sales growth lower than prior-year sales growth

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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