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What Is the Importance of the P/E Ratio to Investors

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What is the importance of the P/E Ratio to investors?


Definitions:

Accounts Receivable

An asset, which is a claim against the customer created by selling merchandise or services on credit.

Credit Sales

Sales made on credit, where the payment from the customer is received at a later date.

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Merchandise

Goods that are bought, sold, and traded within a retail or wholesale business environment.

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