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QUESTION 4 If the P/E ratio of a stock is $18, and EPS is 2, then the stock buyer is paying $9 to purchase 1

QUESTION 4 If the P/E ratio of a stock is $18, and EPS is 2, then the stock buyer is paying $9 to purchase 1 share of the firm's stock True False

QUESTION 5 The debt-equity ratio is the ratio of a firm's long term debt and common equity

QUESTION 6 If the P/E ratio of a firm is more than that of another, then the latter firm's stock price is cheaper on a relative basis True False

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