Which of the following statements is FALSE?
A) For valuation purposes, the trailing price-earnings ratio is generally preferred, since it is based on actual, not expected, earnings.
B) Trailing earnings are the earnings over the previous 12 months.
C) Forward earnings are the expected earnings over the coming 12 months.
D) 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.
Correct Answer:
Verified
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