Which of the following statements is falsethe value of a, Ask an Expert

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Which of the following statements is FALSE?

The value of a share is equal to the present value of all future earnings (EPS).

All else equal, if stock A's dividends grow at a higher rate than stock B's dividends, A is valued higher than B.

P/E ratio is also called earnings multiple because P = appropriate P/E * EPS.

If the current market share price is higher than its intrinsic value, it is over-valued.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91418750

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