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6.A screen that includes a maximum P/E ratio could select companies with negative P/E ratios unless it includes criteria requiring positive earnings. True or false

6.A screen that includes a maximum P/E ratio could select companies with negative P/E ratios unless it includes criteria requiring positive earnings. True or false

7.Enterprise value includes the market values of both debt and equity.True or false

8.The justified forward P/E for a stable-growth company is computed by multiplying the payout ratio by the difference between the required rate of return and the growth rate of dividends.True or false

9.The price-to-sales ratio is calculated as price per share divided by annual net sales per share.True or false

10.A lower earnings yield is interpreted the same way as a lower P/E.True or false

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