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Firms A and B have P/E ratios of 23.2 and 6.7 respectively. Which statement is true? A. Firm B generated more profit B. The market

Firms A and B have P/E ratios of 23.2 and 6.7 respectively. Which statement is true?

A. Firm B generated more profit

B. The market places a lower value on firm As earnings stream

C. Firm Bs management is perceived as better by the market

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D. The market places a lower value on firm Bs earnings stream

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