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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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