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Question text In equity valuation we use the ratio stock price over earnings. Do you think that this ratio is meaningful for companies that have

Question text In equity valuation we use the ratio stock price over earnings. Do you think that this ratio is meaningful for companies that have earnings close to zero in 2020? Select one: No because a ratio divided by a number close to zero is large and therefore it is hard to compare firms with high multiples Yes because a ratio divided by a number close to zero is large and reflects the market price.

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