Transitory earnings are current earnings that are likely to be maintained in the future. ( )
举一反三
- If future earnings are expected to be higher than current earnings (that is, growth in earnings is expected), the P/E will be low. （ ）
- Earnings per share (EPS) represents current earnings while price to earnings ratio represents future earnings.
- The primary indirect cost of going to college is: a. earnings given up by not entering the labor market directly after high school b. an enhanced future flow of earnings c. the value of room and board that would have been provided at home d. tuition expenses A: earnings given up by not entering the labor market directly after high school B: an enhanced future flow of earnings C: the value of room and board that would have been provided at home D: tuition expenses
- A P/E ratio considers _____ A: profits relative to earnings B: price of the stock relative to earnings C: price of a preferred stock relative to earnings D: profits relative to equity
- Which of the following actions is least likely to immediately increase earnings A: Selling more inventory than is purchased or produced. B: Lowering the salvage value of depreciable assets. C: A high proportion of management" s compensation depends on the firm exceeding targets for earnings or the stock price.