Question: Which statements are true regarding the price / earning ( P / E ) ratio? Multiple select question. The P / E ratio is sometimes
Which statements are true regarding the priceearning PE ratio?
Multiple select question.
The PE ratio is sometimes referred to as book value per share.
Low PE ratios usually indicate poor earnings expectations.
Firms with high PE ratios generally have strong investor confidence.
A high PE ratio usually means that investors expect the firm to have strong future earnings and dividend growth.
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