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A higher P/E ratio: a) Shows that the stock is more expensive. b) Signifies that the company pays a higher proportion of earnings as dividends.

A higher P/E ratio:

a) Shows that the stock is more expensive.

b) Signifies that the company pays a higher proportion of earnings as dividends.

c) Indicates that the stock is overvalued.

d) Indicates that the stock is undervalued.

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