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Star Dollar Coffee has a price earnings ratio of 12, while Second Moon Coffee has a price-earnings ratio of 14. You know with certainty that
Star Dollar Coffee has a price earnings ratio of 12, while Second Moon Coffee has a price-earnings ratio of 14. You know with certainty that Star Dollars stock: Has a lower price than one share of stock in Second Moon. Has a lower market price per dollar of earnings than one share of Second Moon. Sells at a higher price per share than one share of Second Moon. Represents a smaller percentage of firm ownership than does one share of Second Moon. Earns a lower profit per share than does one share of Second Moon stock
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