Question: Companies E and P each reported the same earnings per share (EPS), but Company E's stock trades at a higher price. Which of the following

Companies

E

and

P

each reported the same earnings per share (EPS), but Company E's stock trades at a higher price. Which of the following statements is CORRECT?\ Excel Spreadsheet\ Equation Sheet\ a. Company E must have a higher market-to-book ratio.\ b. Company

E

is probably judged by investors to be riskier.\ c. Company

E

trades at a higher

(P)/(E)

ratio,\ d. Company

E

must pay a lower dividend.\ e. Company E probably has fewer growth opportunities.

Companies E and P each reported the same earnings per share (EPS), but Company E's stock trades at a higher price. Which of the following statements is CORRECT? Excel Spreadsheet Equation Sheet a. Company E must have a higher market-to-book ratio. b. Company E is probably judged by investors to be riskier. c. Company E trades at a higher P/E ratio. d. Company E must pay a lower dividend. e. Company E probably has fever growth opportunities

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