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Company J and Company K each recently reported the same earnings per share (EPS). Company J's stock, however, trades at a higher price. Which of
Company J and Company K each recently reported the same earnings per share (EPS). Company J's stock, however, trades at a higher price. Which of the following statements is most correct?
Question 5 options:
Company J must have a higher P/E ratio. | |
Company J must have a higher market to book ratio. | |
Company J must be riskier. | |
Company J must have fewer growth opportunities. | |
All of the statements above are correct. |
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