Which of the following statements is CORRECT? a. The basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects b. In general, if investors regard a company as relatively risky and/or having relatively poor growth prospects, then it will have relatively high P/E and M/B ratios O c. The market/book (M/B) ratio tells us how much investors are willing to pay for a dollar of accounting book value. In general, investors regard companies with higher M/B ratios as more risky and/or less likely to enjoy higher future growth. Od. The apparent," but not necessarily the true financial position of a company whose sates are seasonal can change dramatically during a sven year, depending on the time of year when the financial statements are constructed O. It is appropriate to use the fixed assets turnover ratio to appraise firms effectiveness in managing their bed assets if and only all the firms being compared have the same proportion of fixed assets to total assets Your subscription to Investing Wisely Weekly is about to expire. You plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $90 annually, beginning immediately, or you can get a lifetime subscription for $700, also payable immediately. Assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy? O a.7.34 years O b.9.96 years 10.79 years d. 35.20 years e. 7.91 years