The price/earnings ratios of four companies from the same industry are: Company P/E Ratio Fresh Market....................................16.3 Kroger............................................19.7

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The price/earnings ratios of four companies from the same industry are:

Company P/E Ratio

Fresh Market....................................16.3

Kroger............................................19.7

Sprouts Farmers Market.......................33.7

Whole Foods Market...........................21.3

Required:

What factors might explain the difference in the P/E ratios of these companies?

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Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Question Posted: Apr 28, 2017 08:11 AM

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The price/earnings ratios of four companies from the same industry are: Company P/E Ratio Fresh Market....................................16.3 Kroger............................................19.7

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In general priceearnings PE ratios are inversely related to risk and positively related to both grow...View the full answer

Financial Reporting and Analysis

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