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Which two of the following are most apt to cause a firm to have a higher price-earnings ratio? 1. slow industry outlook 2. high prospect

Which two of the following are most apt to cause a firm to have a higher price-earnings ratio?

1. slow industry outlook

2. high prospect of firm growth

3. very low current earnings

4. investors with a low opinion of the firm

answers

a. 1 and 2 only

b. 2 and 3 only

c. 2 and 4 only

d. 1 and 3 only

e. 3 and 4 only

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