Which Factor Is Least Likely to Explain Why One Company

question 15

Multiple Choice

Which factor is least likely to explain why one company has a higher P/E ratio than another?

• A)The company has a higher growth rate of earnings.
• B)The company has a higher required rate of return.
• C)The company has a higher current ratio.
• D)The company has a higher return on equity.

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Definitions:

Allele

One of two or more alternative forms of a gene that are found at the same place on a chromosome and are responsible for variations in inherited characteristics.

X-Linked Recessive Trait

A genetic condition that is passed down through the X chromosome, where males are more frequently affected because they only have one X chromosome.

Blood Clotting

A physiological process where blood changes from a liquid to a gel, forming a clot to prevent bleeding.

Hemophilia A

A genetic disorder causing a deficiency in clotting factor VIII, leading to excessive bleeding.