Pepper Company's earnings were approximately the same in 2011 and 2012. Even so, the company's (mathrm{P} /
Question:
Pepper Company's earnings were approximately the same in 2011 and 2012. Even so, the company's \(\mathrm{P} / \mathrm{E}\) ratio dropped significantly.
Required
Speculate about why Pepper's P/E ratio dropped significantly while its earnings remained constant.
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