Question
XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that? A. investors believe XYZ
XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that?
| A. | investors believe XYZ stock is overvalued. | |
| B. | XYZ's earnings per share are twice the earnings per share of EFG. | |
| C. | investors believe that for the same level of earnings growth, XYZ is a higher risk company. | |
| D. | investors expect XYZ's earnings to grow faster than EFG's earnings. |
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
