Richard Has Been Following Information About a Firm on a Financial

question 147

Multiple Choice

Richard has been following information about a firm on a financial website. He has noticed that the firm's price-to-earnings ratio (P/E) has been steadily rising. Richard can conclude from this result that the company:

• A) is in serious financial trouble.
• B) has just issued more shares of common stock.
• C) has recently increased its dividend.
• D) may have a growth in future earnings.

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