Which of the following statements is FALSE?
A. The most common valuation multiple is the price-earnings ratio.
B. You should be willing to pay proportionally more for a stock with lower current earnings.
C. A firm's price-earnings ratio is equal to the share price divided by its earnings per share.
D. The intuition behind the use of the price-earnings ratio is that when you buy a stock, you are in a sense buying the rights the firm's future earnings, and differences in the scale of the firms' earnings are likely to persist.