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In the Stock Valuation Formula "Good News" Affects Both the Numerator

Question 22

Multiple Choice

In the stock valuation formula "good news" affects both the numerator and denominator. Conventional wisdom on Wall Street is that the effect on the __________ is __________ the effect on the __________.


A) numerator; less than; denominator
B) numerator; greater than; denominator
C) numerator; the same as; denominator
D) None of the above.

Correct Answer:

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