Question: Having some trouble with this. I think it is option A Last year, Bennett's had a PE ratio of 5.4. This year, the PE ratio

Having some trouble with this. I think it is option A

Last year, Bennett's had a PE ratio of 5.4. This year, the PE ratio is 4.9. Based on this information, it can be stated with absolute certainty that

a either the price per share, the earnings per share, or both, changed.

b investors are paying a lower price for each share of stock purchased.

c the price per share increased.

d investors are receiving a lower rate of return this year.

e the earnings per share decreased.

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!