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27) Firm A is a high-risk, high growth company, while firm B is a low-risk, low growth company. Everything else equal, which firm would you
27) Firm A is a high-risk, high growth company, while firm B is a low-risk, low growth company. Everything else equal, which firm would you expect to have a higher P/E ratio?
Multiple Choice
A) Firm A
B) Firm B
C) Both would have the same P/E if they were in the same industry.
D) Unable to determine
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