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Laura is considering two investments: Stock A and Both stocks have a P/E ratio of 19. Stock A has an expected growth rate of 5
Laura is considering two investments: Stock A and Both stocks have a P/E ratio of 19. Stock A has an expected growth rate of 5 percent and stock B has an expected growth rate of 13 percent. Which is the better stock and why? Multiple Choice Stock B is better because it is considered to be cheaper than Stock A. Stock A is better because it is expected to grow at a slower rate and therefore will be less risky than Stock B. Since the P/E ratios are the same, Laura would be indifferent between the two stocks. None of these choices are correct
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