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Firm A is a well-established auto-maker with a few models that sell very well. It also pays 70% of its earnings as dividends. Firm B
Firm A is a well-established auto-maker with a few models that sell very well. It also pays 70% of its earnings as dividends. Firm B is a large tech company with very low dividend payment and recently has even stopped paying any dividends to focus on an aggressive growth strategy. Both firms also have a relatively similar size. Everything else equal, which firm would you expect to have a higher P/E ratio? Both would have the same P/E. Firm A Firm B The information provided is not enough
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