Which of the following statements is true about the price earnings $($P$/$E$)$ ratio?

Multiple Choice

The P$/$E ratio could be used to approximate the value investors would be willing to pay for the company's acquisition from existing owners.

It is a ratio of importance to creditors.

The P$/$E ratio increases as profit increases.

A high P$/$E ratio indicates investors have little confidence in the future profit potential of the company.