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QUESTION 2 If an investor buys shares in a firm with a low P/E ratio, which of the following is likely to be true? The

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QUESTION 2 If an investor buys shares in a firm with a low P/E ratio, which of the following is likely to be true? The investor believes the firm will increase earnings in the future. The investor believes the firm is overvalued. The investor believes the firm will decrease earnings in the future. The investor believes the firm is undergoing financial difficulty. QUESTION 3 Based on DuPont analysis, what act will NOT lead to a higher return on equity? O Increasing sales revenue. Increasing debt to buyback shares. Issuing more shares to repay debt. Increasing the selling price for products

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