Question: Comparies E and P each reported the same earnings per share ( EPPS ) , but Company E ' s stock trades at a higher
Comparies and each reported the same earnings per share EPPS but Company stock trades at a higher price. Which of the following statements is CORRECT?
a Company trades at a higher PE ratio.
b Company E must pay a lower dividend.
c Compary E probably has fewer growth opportunities.
d Company is probably judged by investors to be riskier.
e Compary E must have a higher markettobook ratio.
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