1. Which of the following statements is FALSE?

   a		We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms.
   b		For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual not expected earnings.
   c		Forward earnings are the expected earnings over the coming 12 months.
   d		Trailing earnigns are the earnings over the previous 12 months.