Question: multiple choice question Multiple Price / Earnings (or P/E): A potential downside of using it is: a) Managers have power not discretion in determining reported

multiple choice question
Multiple Price / Earnings (or P/E):
A potential downside of using it is:
a) Managers have power not
discretion in determining reported earnings, which reduces P/E comparability across firms.
b) Earnings can be very low, zero or negative relative to price, producing a P/E with no economic meaning.

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