Question
See-Saw Incorporated has a P/E ratio of 45, and SloMo Corporation's P/E ratio is 12. Based on these performance measures, which stock do you expect
See-Saw Incorporated has a P/E ratio of 45, and SloMo Corporation's P/E ratio is 12. Based on these performance measures, which stock do you expect has the better growth prospects?
SloMo Corporation
They have equal growth prospects.
This cannot be determined without knowing the past price history.
See-Saw Incorporated
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
