CHAPTER 7 QUIZ 21 TO 25

CHAPTER 7  QUIZ 21 TO 25

21. The combined earnings and dividend model considers the present value of
dividends plus the present value of a future P/E ratio times future projected
earnings.

22. All things being equal, the more rapid growth a firm enjoys the higher the P/E ratio

23. Least squares trend analysis is used to take a simple average of past data

24. With the income statement method of forecasting EPS, you start with a forecast of
profits.

25. There is little relationship between R&D expenditures as a percent of sales and
growth of earnings per share

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