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Given two stocks from company A and B. If stock prices are the same, but price-to-earnings ratio of company A is lower than company B's.
Given two stocks from company A and B. If stock prices are the same, but price-to-earnings ratio of company A is lower than company B's. All else being equal, we conclude that:
a. Stock A has a lower forecast earnings than stock B b. Stock A is riskier than stock B c.Stock A has a higher PVGO than stock B Stock A has a higher retention ratio than stock B
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