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Indicate Whether Each of the Following Statements Is True or False

Question 94

Short Answer

Indicate whether each of the following statements is true or false.
1. The price-earnings ratio is computed by dividing the market price per share by the earnings per share
2. Many successful corporations do not pay dividends to their stockholders
3. Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock
4. The number of shares to purchase in order to attain significant influence over the operations of a corporation can readily be determined from the financial statements
5. As a general rule, the higher the P/E Ratio, the greater is the optimism for future growth of the corporation

Correct Answer:

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1. True
2....

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