Company X Has a P/E Ratio of 16 in Year

Multiple Choice

Company X has a P/E ratio of 16 in year 2009 and 16.5 in 2010.In 2011 its P/E ratio is 24.The best way to interpret these data is to conclude that:

A) the shares are overpriced and should be sold.
B) the shares have great growth capacity and should be bought.
C) other financial results and news should be examined to determine the cause of the P/E ratio change.
D) the shares are under-priced and should be bought.