QUESTION $28$

What are three factors that determine a company's price$-$earnings ratio?

method used.

QUESTION $29$

Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?

It wouldn't seem to be$.$ Investors who don't like the voting features of a particular class of stock are under no obligation to buy it$.$

It is unethical. Investors should have the same voting features in all classes of stock.

QUESTION $30$

Define each of the following investment rules and discuss any potential shortcomings of each: Payback Period

payback period is biased toward short$-$term projects; it fully ignores any cash flows that occur after the cutoff point.

compensation is often tied to the attainment of target accounting ratio goals.

value of the project is zero.