Question: You are examining the P/CF ratio for an industry compared to the market and find that the industry ratio has always been at a discount

You are examining the P/CF ratio for an industry compared to the market and find that the industry ratio has always been at a discount to the market—for example, the industry market ratio of ratios is about 0.80. Discuss the variable(s) you would examine to explain this difference or to justify an increase in the industry-market ratio.

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