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Question 16 (5.55 points) Which of the following statements is true? Traders refer to firms with low P/E and/or High P/B ratios as growth stocks.

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Question 16 (5.55 points) Which of the following statements is true? Traders refer to firms with low P/E and/or High P/B ratios as growth stocks. A firm issues a bond with a face value of $1.000 and a coupon rate of 12% maturing in 15 years. Bonds with similar risk are currently yielding 10% per year. The value of the bond now is greater than $1.000. O A firm that pays higher dividends has a higher share value. Traders refer to firms with high P/E and/or high P/B ratios as value stocks. Question 17 (5.55 points) Debtor Corporation traded at 8 times sales in 2019. It was reporting a net profit margin on its sales of 15%. What was its P/E ratio? 092 53.33 83.33 O 1.2 Question 18 (5.65 points) What is the definition of enterprise price-to-book (i.e. enterprise P/B) ratio? (Market value of equity +Net market value of Debt)/(Book value of equity + Net book value of Debt) Market value of equity/Book value of equity (Market value of equity +Net market value of Debt Book value of equity Market value of equity (Book value of equity + Net book value of Debt)

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