If a companys Price-Earnings (P-E) ratio is higher than the P-E ratio for other companies in the

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If a company’s Price-Earnings (P-E) ratio is higher than the P-E ratio for other companies in the same industry,that indicates:

a. The market (investors) expect the company’s future earnings to be higher than other companies’ future earnings.

b. The market (investors) expect the company to grow more than other companies in the same industry.

c. The company’s stock is undervalued.

d. Both A & B could be true.

e. None of the above.

Related Book For answer-question

Money, Banking, Financial Markets and Institutions

ISBN: 978-0538748575

1st edition

Authors: Michael Brandl

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Posted Date: Oct 10, 2018 02:45 AM

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If a companys Price-Earnings (P-E) ratio is higher than the P-E ratio for other companies in the

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D Both A and B could be true Reason ... View the full answer

Money, Banking, Financial Markets and Institutions

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