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5. Which of the following does not explain why P/E ratios can vary among firms in the same industry? a) Some firms use aggressive accounting
5. Which of the following does not explain why P/E ratios can vary among firms in the same industry? a) Some firms use aggressive accounting practices to enhance their reported earnings. b) Some firms have fewer growth opportunities. c) Stock ownership by insiders can create potential conflicts of interest. One or more firms shares are mispriced. All of the above are, in fact, possible explanations
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