Multiple Choice
Al's has a price-earnings ratio of 18.5. Ben's also has a price-earnings ratio of 18.5. Which one of the following statements must be true if Al's has a higher PEG ratio than Ben's?
A) Al's has more net income than Ben's.
B) Ben's is increasing its earnings at a faster rate than Al's.
C) Al's has a higher market value per share than does Ben's.
D) Ben's has a lower market-to-book ratio than Al's.
E) Al's has a higher earnings growth rate than Ben's.
Correct Answer:
Verified
Correct Answer:
Verified
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