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2. Assuming that other things are constant, the price earnings (P/E) ratio a. is highe b. is lower for firms with high growth prospects and

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2. Assuming that other things are constant, the price earnings (P/E) ratio a. is highe b. is lower for firms with high growth prospects and higher for riskier firms. c. is not affected by the growth prospects of the firm. d. is equal to the market price of the share of the firm e. is equal to the earmings per share of the firm. r for firms with high growth prospects and lower for riskier firms

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