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Firm A has a P/E ratio of 10. Firm B has a P/E ratio of 25. Assume that the market has correctly priced these two
Firm A has a P/E ratio of 10. Firm B has a P/E ratio of 25. Assume that the market has correctly priced these two firms. Which of the following most likely explains Firm B's higher P/E ratio? Firm A is riskier than B Firm A is more profitable than B O None of the above Firm A is growing at a faster rate than B
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