Multiple Choice
If people expect future earnings of Galt Corporation to be high relative to current earnings,then
A) the P/E ratio of its stock will be high.A P/E ratio of 8 is relatively high.
B) the P/E ratio of its stock will be high.A P/E ratio of 8 is relatively low.
C) the P/E ratio of its stock will be low.A P/E ratio of 8 is relatively high.
D) the P/E ratio of its stock will be low.A P/E ratio of 8 is relatively low.
Correct Answer:
Verified
Correct Answer:
Verified
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