Second Cups Has a Price-Earnings Ratio of 16

Multiple Choice

Second Cups has a price-earnings ratio of 16. Tam Hortons has a price-earnings ratio of 19. Thus, you can state with certainty that one share of stock in Tam Hortons':

A) Has a higher market price than one share of stock in Second Cups.
B) Has a higher market price per dollar of earnings than one share of Second Cups.
C) Sells at a lower price per share than one share of Second Cups.
D) Represents a larger percentage of firm ownership than does one share of Second Cups' stock.
E) Earns a greater profit per share than does one share of Second Cups' stock.