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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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