2A2S A STEADY DROP IN A FIRM’S PRICE/EARNINGS RATIO COULD INDICATE TH...

79.

CSO: 2A2e

LOS: 2A2s

A steady drop in a firm’s price/earnings ratio could indicate that

a.

earnings per share has been increasing while the market price of the stock has

held steady.

b.

earnings per share has been steadily decreasing.

c.

the market price of the stock has been steadily rising.

d.

both earnings per share and the market price of the stock are rising.