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QUESTION 5 Which of the following statements is FALSE? The PE Ratio is often useful as a measure of relative value. The PE Ratio is

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QUESTION 5 Which of the following statements is FALSE? The PE Ratio is often useful as a measure of relative value. The PE Ratio is inversely proportional to the cost of equity capital. The PE Ratio is determined by multiplying current earnings by current market price. Everything else being equal, the Price-Earnings (PE) Ratio will be larger for a high-growth firm

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