Which of the following statements is false? for valuation purposes, the trailing p/e ratio is generally preferred, since it is based on actual not expected earnings. trailing earnings are the earnings over the previous 12 months. forward earnings are the expected earnings over the coming 12 months. we can estimate the value of a firm's shares by multiplying its current earnings per share by the average p/e ratio of comparable firms.

The statement that is false here is A) trailing P/E ratio are used for valuation because it is based on actual not expected earnings.

Explanation:

For the valuation purposes , the most preferred P/E ratio is forward P/E ratio, not the trailing P/E ratio because here we are more concerned about future earnings not the current. These forwards earnings are the earnings which are expected over the coming year or 12 months of time.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o