Question: As part of your duties at Apex Financial Ltd you
As part of your duties at Apex Financial Ltd. you have been asked to review the analysis carried out by a rival company—Prime Group—of the WX Media Company. WX has had a constant P/E ratio for the past five years. Prime’s analyst has made the following statement: “WX’s constant P/E ratio is due to zero growth in its earnings, and therefore, WX is not a good investment.” Comment on Prime's statement.
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