P/E - Market price per share of common stock + Earnings per share Question 18 1 pts Which statement is incorrect? To capture innovation growth, we should use R&D growth We should use profit in US$ for comparable firm approach because Domino Pizza have positive earnings. You will get similar qualitative conclusion using sales/expenses. To capture how early in the cycle firms spend on innovation, they should use R&D/sales To avoid negative earnings but still capture profitability, one should use expenses divided by sales