When analyzing a price-earnings ratio:.
a. A higher price-earnings ratio indicates pessimism because the price is too high compared to the earnings
b. The higher the price-earnings ratio, the more investors are paying for earnings.
c. A low ratio indicates that investors expect higher earnings in the future.
d. Price-earnings ratios are helpful when comparing two companies in the same industry, but not to the market in general.
e. The price-earnings ratio provides enough information to allow an investor to decide whether or not to invest in a particular stock.
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When analyzing a price-earnings ratio:.
a. A higher price-earnings ratio indicates pessimism b...
a. A higher price-earnings ratio indicates pessimism b...
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