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a) Companies A and B have P/E ratios of 12 and 15 respectively. What information is contained in PE ratios? (4 marks) Which firm A

a) Companies A and B have P/E ratios of 12 and 15 respectively.

What information is contained in PE ratios? (4 marks)

Which firm A or B would you prefer to invest in? Why? (5 marks

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