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The 12-months trailing P/E ratio as well as the leading (12-months) P/E ratio of Company X is 15. The 12-months trailing P/E ratio of Company

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The 12-months trailing P/E ratio as well as the leading (12-months) P/E ratio of Company X is 15. The 12-months trailing P/E ratio of Company Y is 15, but the leading (12-months) P/E ratio of Company Y is 10. Which of the following statements is true, based on this information? Company Y earnings per share are expected to grow faster than Company X earnings during the next 12 months O market expects that Company X and Company Y earnings per share will grow at the same growth rate during the next 12 months Company Y is relatively overvalued in the market o investment in Company X is less riskier because its 12-months trailing and leading P/E ratios do not differ

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