25. Which of the following is true regarding the price/earnings ratio?

A) A high P/E ratio is often taken to mean the firm has poor prospects for future growth.

B) A P/E ratio of 15 means investors are willing to pay $1 for each $15 of past earnings.

C) Low P/E ratios can only result from a firm having very low earnings.

D) If a firm has high earnings per share, then it will have a very high P/E ratio.

E) NONE OF THE ABOVE IS TRUE