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7. One of these is true A. A high Price-Earnings (PE) ratio may indicate that a firm is expected to grow significantly. B. A PE
7. One of these is true
A. A high Price-Earnings (PE) ratio may indicate that a firm is expected to grow significantly.
B. A PE ratio of 16 indicates that investors are willing to pay $1 for every $16 of current earnings.
C. PE ratios are unaffected by the accounting methods employed by a firm.
D. The PE ratio is classified as a profitability ratio.
E. The PE ratio is a constant value for each firm.
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