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Company A has a price-earnings ratio of 9 times and a payout ratio of 40%. Company B

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Company A has a price-earnings ratio of 9 times and a payout ratio of 40%. Company B has a price earnings ratio of 22 times and a payout ratio of 5%. Which company's shares would be better for an investor interested in large capital gains versus steady income? Why?
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Company B would be a better choice The priceearnings ...View the full answer


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