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    Accounting What the Numbers Mean Study Set 1
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    Exam 11: Financial Statement Analysis
  5. Question
    A Higher P/E Ratio Means That
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A Higher P/E Ratio Means That

Question 1

Question 1

Multiple Choice

A higher P/E ratio means that:


A) the stock is more reasonably priced.
B) the stock is relatively expensive.
C) investors are wary of the stock.
D) earnings are expected to decrease.

Correct Answer:

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