A stock with a high P/E ratio is a better investment than one with a lower P/E ratio.
举一反三
- A low debt ratio is safer than a high debt ratio.
- Which<br/>of the following is technical screen? () A: P/E<br/>ratio screen B: P/S<br/>ratio screen C: Small<br/>stock screens D: P/B<br/>ratio screen
- Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
- For the same firm, the current ratio is always larger than quick ratio.
- Which one of the following statements is correct? ( ) A: An increase in the depreciation expense will not affect the cash coverage ratio. B: The debt-equity ratio can be computed as 1 plus the equity multiplier. C: Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. D: If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.