Multiple Choice
Penny's Candies is showing a P/E ratio of 1.32, while Donna's Confections has a P/E ratio of 6.7. What is the general mood of investors about these companies?
A) It is possible that Donna's is going to explode with growth in the short term. It's a "buy" kind of stock for sure.
B) Investors expect more longterm growth from Donna's than from Penny's.
C) Investors expect more longterm growth from Penny's than from Donna's.
D) Investors should sell stock in Donna's because it will crash in the near future.
Correct Answer:

Verified
Correct Answer:
Verified
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