Question

According to finance professionals, which one of these factors has the biggest impact on a firm's pe ratio?

Answer 1

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❏The definition of fixed expenses is “any expense that does not change from period to period," such as mortgage or rent payments, utility bills, and loan payments.

❏The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis.

❏Fixed expenses are expenses that do not change from month to month, and variable expenses are expenses that can fluctuate from month to month.

❏Complete the second column of the chart by determining if each expense is fixed or variable

Answer 2

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The definition of fixed expenses is “any expense that does not change from period to period," such as mortgage or rent payments, utility bills, and loan payments.

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