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If a Firm's Price to Earnings (P/E) Ratio Is 10

Question 63

Multiple Choice

If a firm's price to earnings (P/E) ratio is 10, ____.


A) it is not possible for it to be paying dividends also
B) its market to book ratio has to be at least 2.0
C) its net profit margin is positive
D) its return on stockholders' equity is negative

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