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2. A company with low P/E ratio indicates that the market perceives it as lower growth. Do you agree with the above statement? Use
2. "A company with low P/E ratio indicates that the market perceives it as lower growth." Do you agree with the above statement? Use the following information to aid your answer. A train operator has a stable earning of 10 per share. It plans to pay 100% of its earning as dividend. Assume that investors expected return is 15% and that the company's return on equity is 25%. [12.5 marks]
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