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Problem:

Which of following statements are regarding the price or earnings ratio is false?

A. The price or earnings ratio is a stable relationship for most companies.

B. A high price or earnings ratio points to investors have high confidence in future potential of company.

C. It is more practical to compare the company’s price or earnings ratio to the competitor’s ratio or industry average ratio.

D. The price or earnings ratio is evaluated by dividing the market price of stock by earnings per share

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M914102

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