Company G and Company H are both fast growing technology companies that operate in the same industry and have similar prospects. Company G has a price-earnings Ratio (P/E) of 30, Company H has a P/E of 55, and the industry average P/E is 28. Based on these criteria alone, which company do investors expect to have the best growth prospects? 

a. Company G or H because P/E is not a measure of market value. 

b. Company H because its P/E is above the industry P/E. 

c. Company G because it has the lower P/E. 

d. Company H because it has the higher P/E.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The answer is d Company H ... View the full answer