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Last year, your firm had a price - earnings ratio of 1 5 and earnings per share of $ 1 . 2 0 . This

Last year, your firm had a price-earnings ratio of 15 and earnings per share of $1.20. This year, the price-earnings ratio is 18 and the earnings per share is $1.20. Based on this information, it can be stated with certainty that:
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investors are paying a lower price per share this year as compared to last year.
the earnings per share decreased.
investors are receiving a higher rate of return this year.
the price per share decreased.
the investors' outlook for the firm has improved.

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