How Would You Explain P/E Ratio Differences Among Companies? by Differences

question 7

Multiple Choice

How would you explain P/E ratio differences among companies? By differences in investor:

• A) expectations about the future growth of the market.
• B) estimates of the recent growth of earnings.
• C) expectations about the future growth of earnings.
• D) estimates about the recent growth of dividends.

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Definitions:

Convicted

Found guilty of a crime by a court of law.

Net Worth

The total assets owned by an individual or entity minus the total liabilities owed; a measure of financial health.

Modern Slavery

Modern slavery encompasses forms of exploitation that deprive someone of their freedom for personal or commercial gain, including human trafficking, forced labor, and debt bondage.

Wealthy Relatives

Family members who possess a considerable amount of wealth, assets, or financial resources.