Question
The expected P/E multiple of ABC is 40 and the expected P/E multiple of XYZ is 8. Why are P/E multiples of the two stocks
The expected P/E multiple of ABC is 40 and the expected P/E multiple of XYZ is 8. Why are P/E multiples of the two stocks so different?
A) ABC's expected growth rate is lower than XYZ
B) ABC's expected growth rate is higher than that of XYZ
C) ABC is riskier than XYZ
D) None of the above
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
