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Companies a and C Each Reported the Same Earnings Per

Question 30

Multiple Choice

Companies A and C each reported the same earnings per share (EPS) , but Company A's stock trades at a higher price. Which of the following statements is CORRECT?


A) company a trades at a higher p/e ratio.
B) company a probably has fewer growth opportunities.
C) company a is probably judged by investors to be riskier.
D) company a must have a higher market-to-book ratio.
E) company a must pay a lower dividend.

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