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?

a. Company E is probably judged by investors to be riskier.

b. Company E trades at a higher P/E ratio.

c. Company E probably has fewer growth opportunities.

d. Company E must pay a lower dividend.

e. Company E must have a higher market-to-book ratio

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