Question: 5. One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be financially weak. What criterion might an
5. One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be financially weak. What criterion might an analyst include to avoid inadvertently selecting weak companies?
A. Net income less than zero B. Debt-to-total assets ratio below a certain cutoff point C. Current-year sales growth lower than prior-year sales growth
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