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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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