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Firms with higher expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with lower expected growth rates if
Firms with higher expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with lower expected growth rates if everything else is equal and the price is correctly valued.
A. | lower than | |
B. | higher than | |
C. | equal to | |
D. | There is not any linkage between growth rate and P/E ratios |
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