You have been examining three firms in the telecommunications business. You have identified the following P /E

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You have been examining three firms in the telecommunications business. You have identified the following P /E ratios for the companies.

a. Which firm appears to be the best value on the P /E ratio alone?

Graham .................................. 18
Ted .......................................... 34
Showus ................................... 21

b. Why do you suppose that Ted has the highest P /E ratio?

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Foundations Of Financial Management

ISBN: 9781259265921

11th Canadian Edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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