Question: Jones Group has been generating stable after-tax return on equity (ROE) despite declin- ing operating income. Explain how it might be able to maintain its

  1. Jones Group has been generating stable after-tax return on equity (ROE) despite declin- ing operating income. Explain how it might be able to maintain its stable after-tax ROE.
  2. List at least 2 weaknesses of using P/E ratio in stock valuation.

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