Question
Mark the only incorrect statement about valuation: a. EV/EBIT is more meaningful than P/E ratio when firms have very different leverage ratios b. Market-to-Book Ratio
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Mark the only incorrect statement about valuation:
a. EV/EBIT is more meaningful than P/E ratio when firms have very different leverage ratios
b. Market-to-Book Ratio is used to compare stocks with growth or low growth potential
c. The P/E ratio of any company that is fairly priced will equal its growth rate
d. Two stocks with the same EPS growth (g) and equivalent equity cost of capital dont have the same P/E ratios
Mark the only incorrect statement about valuation:
| a. | EV/EBIT is more meaningful than P/E ratio when firms have very different leverage ratios | |
| b. | Market-to-Book Ratio is used to compare stocks with growth or low growth potential | |
| c. | The P/E ratio of any company that is fairly priced will equal its growth rate | |
| d. | Two stocks with the same EPS growth (g) and equivalent equity cost of capital dont have the same P/E ratios |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
