13. Which of the following statements is FALSE? equal to the share price divided by its earnings per share. A. A firm's price-earnings ratio is O B. The intuition behind the use of the price-earnin in a sense buying the rights to the firm's future eam earnings are likely to persist. gs ratio is that when you buy a stock, you are ings, and cd rences in the scale of firms O C. The most common valuation multiple is the price- earnings ratio. ou should be villing o pay proportionally more for a stock wth lower current earnings ID: 10.2-13