Question: A _ _ _ _ _ _ _ _ _ P / E may indicate that the market is willing to pay a _ _

A _________ P/E may indicate that the market is willing to pay a ________ for them. Over the long run, if the earnings do not match with market expectation, the price of the stock will ________ to match with industry average.
high; discount; increase
low; discount; decrease
high; premium; decrease
high; premium; increase

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!