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By comparing the price-to-eamings ratio of different companies, you can see a. how expensive their stock is relative to each other. b. how much you

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By comparing the price-to-eamings ratio of different companies, you can see a. how expensive their stock is relative to each other. b. how much you have to invest in each to get a dollar's worth of earnings in return. c. how much of their profits the companies retained d. a and b QUESTION 14 Mari is concerned about cash flow returns, She wants to know how much she gets in actual cash payback for every dollar she has invested in a stock. Which ratio should she use to find out what she wants to know? a. Eamings per share b. Dividends per share c. Dividend yield d. Price-to-earnings ratio

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