Question : 71. One firm may have a lower earnings per share simply : 1230617

71. One firm may have a lower earnings per share simply because it has a  
A. smaller dollar amount of common and preferred shares outstanding
B. smaller number of common shares outstanding
C. larger number of common shares outstanding
D. smaller number of common and preferred shares outstanding
E. larger number of common and preferred shares outstanding

72. Which of the following is true regarding the price-earnings ratio?  
A. price-earnings ratio = market price per share/earnings per share.
B. tables of stock prices and financial periodicals often present price-earnings ratios
C. P/E ratios should use normal, ongoing earnings data in the denominator
D. the analyst must interpret the published P/E ratios cautiously if the firm’s net income includes unusual, nonrecurring gains and losses
E. all of the above

73. Analysts deciding between investments must consider the comparative risks. Which of the following factors affect the risk of business firms:  
A. Economy-wide factors, such as increased inflation or interest rates, unemployment, and recessions.
B. Industry-wide factors, such as increased competition, lack of availability of raw materials, changes in technology, and increased government regulatory actions, such as anti­trust or clean environment policies.
C. Firm-specific factors, such as labor strikes, loss of facilities due to fire or other casualty, and poor health of key managerial personnel.
D. The amount of liquid resources available to the firm to run smoothly and effectively.
E. all of the above

74. Analysts deciding between investments must consider the comparative risks. Which of the following are economy-wide factors that affect the risk of business firms? 
A. increased inflation
B. increased interest rates
C. unemployment
D. recessions
E. all of the above

75. Analysts deciding between investments must consider the comparative risks. Which of the following are not economy-wide factors that affect the risk of business firms? 
A. increased inflation
B. increased interest rates
C. unemployment
D. recessions
E. increased competition

76. Analysts deciding between investments must consider the comparative risks. Which of the following areindustry-wide factors that affect the risk of business firms? 
A. increased competition
B. increased government regulatory actions, such as anti­trust or clean environment policies
C. changes in technology
D. lack of availability of raw materials
E. all of the above

77. Analysts deciding between investments must consider the comparative risks. Which of the following are not industry-wide factors that affect the risk of business firms? 
A. increased competition
B. increased government regulatory actions, such as anti­trust or clean environment policies
C. changes in technology
D. lack of availability of raw materials
E. increased inflation

78. Analysts deciding between investments must consider the comparative risks. Which of the following arefirm-specific factors that affect the risk of business firms? 
A. labor strikes
B. loss of facilities due to fire
C. poor health of key managerial personnel
D. loss of facilities due to earthquake
E. all of the above

79. Analysts deciding between investments must consider the comparative risks. Which of the following are not firm-specific factors that affect the risk of business firms? 
A. labor strikes
B. loss of facilities due to fire
C. poor health of key managerial personnel
D. loss of facilities due to earthquake
E. unemployment

80. Measures for assessing short-term liquidity risk include all of the following except: 
A. Current ratio
B. Quick ratio
C. Cash flow from operations to current liabilities ratio,
D. Working capital turnover ratios
E. Price earnings ratio