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The following table shows sample price-to-earnings ratios of three fast-food companies on August 1 , 2016. Which of the following is a possible explanation for
The following table shows sample price-to-earnings ratios of three fast-food companies on August 1 , 2016. Which of the following is a possible explanation for the differences in P/E ratios? McDonald's has a higher discount rate than Wendy's. The market believes that Yum! Brands has more growth opportunities than Wendy's or McDonald's. Wendy's has a lower discount rate than Yum! McDonald's has higher earnings than either Yum! Brands or Wendy's
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