Which of the following statements regarding the PE ratio is true? A high PE ratio is indicative of a company with questionable future earnings. O The higher the PE ratio the greater the risk. A low PE ratio reflects a company with a strong financial future. The lower the PE ratio the greater the risk.

what happens if a company doesn't manage risk ?

Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile? ... O A. They do not tell how the decision affects the firm's reported profits from an accounting perspective. O B. They are not easily predicted from historical financial statements of a firm and its competitors. O C. They do not show how the firm's earnings are expected to change as the result of a particular decision. O D. These earnings are not actual cash flows.

Funding risk is the risk that a firm will not be able to meet its short-term financial obligations when due.   Select one: True False