David Rose is puzzled. His company had a price-earnings ratio of 25 in 2004. He feels that

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David Rose is puzzled. His company had a price-earnings ratio of 25 in 2004. He feels that this is an indication that the company is doing well. Julie Bast, his accountant, says that more information is needed to determine the firm's financial well-being. Who is correct? Why?

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471691952

3rd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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