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Which of the following statement is correct? A. If the P/E ratio of a company is higher than the benchmark P/E ratio, the stock of
Which of the following statement is correct?
A. | If the P/E ratio of a company is higher than the benchmark P/E ratio, the stock of the company is overvalued. | |
B. | If the PEG ratio of a company is higher than the benchmark PEG ratio, the stock of the company is undervalued. | |
C. | All else unchanged, the higher a firms risk, the lower the P/E ratio. | |
D. | All else unchanged, if a firm increases its plowback ratio, this will result in a higher P/E ratio. |
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