Company Low has a P/E ratio of 12 and Company High has a P/E ratio of 24. The best explanation is: Both companies have the same expected growth but Company High is seen as riskier Both companies have the same risk levels, but Company High will grow faster than Company Low Both companies have the same risk levels, but Company Low is expected to grow faster than Company High Company High has dividends per share and earnings per share that are twice as large as Company Low