Which of the following statements are correct?
a. if firms x and y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.
b. if firms x and y have the same p/e ratios, then their market-to-book ratios must also be equal.
c. if firms x and y have the same earnings per share and market-to-book ratio, then they must have the same price/earnings ratio.
d. if firm x's p/e ratio exceeds that of firm y, then y is likely to be less risky and/or be expected to grow at a faster rate.
e. if firms x and y have the same net income, number of shares outstanding, and price per share, then their p/e ratios must also be the same.

e. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.

Explanation:

If two companies have same net income, same number of outstanding shares then its Earnings per share = will be same.

Further the market is also same.

In that case,

P/E ratio = will also be same.

As both the numerator and denominator in the fraction is same.

Therefore, Statement E is correct.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

a. money supply  

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