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a) A tech company's stock has a market price of $50 and an EPS of $5. The industry average is 22. What is the company's
a) A tech company's stock has a market price of $50 and an EPS of $5. The industry average is 22. What is the company's P/E ratio?
b) Would a value investor think this is a buy signal?
c) Why?
d) Would a momentum investor think this is a buy signal?
e) Do income investors focus on P/E ratios? What do they focus on?
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