Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. when the market price per share of a firms stock d

When the market price per share of a firms stock decreases but the firms earnings...

90.2K

Verified Solution

Question

Accounting

When the market price per share of a firms stock decreases but the firms earnings remain constant, the firms price-earnings ratio will _______, which suggests that investors should expect the firms profitability to _______.

A) increase; decrease

B) increase; increase

C) decrease; increase

D) decrease; decrease

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Critically evaluate the assumptions upon which the Fisher Seperation Theorem is based and assess the extent...

Finance
Q

Why would you buy Treasury bill futures contracts and as Eurodollar futures? What is the possible use...

Finance
Q

Discuss effective techniques for reducing stage fright in business communication.

Accounting
Q

An arrangement of a parallel plate capacitor a spring and a battery is shown in...

Physics
Q

A uestion 14 prevents changes to this answer 20 2 3 11 1 31 7...

Basic Math
Q

Use the basic probability principle to solve the following problem Express each probability as a...

Algebra
Q

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the...

Accounting
Q

Give three examples of business objectives, their corresponding system functionality and information requirements.

Accounting
Q

At the beginning of its current fiscal year, Willie Corporation's balance sheet...

Accounting
Q

Akita Sushi Restaurant offers two types of all-you-can eat options: regular and ultimate. Ultimate provides...

Accounting
Q

Cash Company has income from operations of $22,880, invested assets of $104,000, and sales of...

Accounting
Q

DEBIT CREDIT ...

Accounting