Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E...
Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with higher expected growth rates.
Multiple Choice
a)equal to
b)There is not necessarily any linkage between risk and P/E ratios.
c)lower than
d)higher than
Homework Answers
Ans c)lower than
Firms with lower expected growth rates tend to have P/E ratios that are lower than the P/E ratios of firms with higher expected growth rates.
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Firms with lower expected growth rates tend to have P/E ratios
that are ___________ the P/E...
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Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned the same average returns as firms with low P/E ratios earned lower average returns than firms with low P/E ratios had higher dividend yields than firms with low P/E ratios
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