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The price / earnings ratios of four companies from different industries are: Company P / E Ratio Amazon.com 8 3 . 7 Kroger 6 .
The priceearnings ratios of four companies from different industries are:
Company
PE Ratio
Amazon.com
Kroger
Microsoft
Toyota Motors
Source : Based on closing stock prices on March and trailingtwelvemonths earnings per share, both from Yahoo Finance.
Required:
What factors might explain the difference in the PE ratios of these companies?
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