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What features make the price/earnings ratio sensible for use in valuation: A. Price/Sales ratio provides a framework to evaluate the effects of corporate policy decisions

What features make the price/earnings ratio sensible for use in valuation:

A. Price/Sales ratio provides a framework to evaluate the effects of corporate policy decisions and price changes

B. Profit margin is normally consistent across firms within an industry

C. Sales are relatively stable and might not change, thus giving stability to stock prices, even though earnings might change significantly

D. All of the above

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