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What Is the Key Difference Between Historical PER and Prospective

Question 13

Multiple Choice

What is the key difference between Historical PER and Prospective PER?


A) Historical PER uses last year's earnings but Prospective PER focuses on next year's earnings and dividend.
B) Historical PER uses earnings in year 0 but Prospective PER focuses on current earnings.
C) Historical PER uses average past earnings but Prospective PER focuses on current earnings.
D) Historical PER uses earnings in years 1 and 2 but Prospective PER focuses on next year's earnings.

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