Question
The current P/E ratios of Company ABC and XYZ are 8 and 10 respectively. Both companies reinvest 40% of its earnings. Which of the following
The current P/E ratios of Company ABC and XYZ are 8 and 10 respectively. Both companies reinvest 40% of its earnings. Which of the following may help explain the difference in their P/E ratios? Choose the best answer.
A. ABC has a lower ROE
B. ABC has a higher discount rate
C. All of the above
D. None of the above
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
