A Firm's P/E Ratio Tends to Be Higher If ________

question 183

Multiple Choice

A firm's P/E ratio tends to be higher if ________.

• A)its risk and its growth prospects are lower
• B)its risk is higher and its growth prospects are lower
• C)its risk and its growth prospects are higher
• D)its risk is lower and its growth prospects are higher

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Definitions:

Wage Rates

The standard amount of compensation given to employees for their services, usually expressed per hour or year.

Global Economy

The interconnected worldwide economic activities that involve the exchange of goods and services across national borders.

Poverty

is a condition where individuals lack sufficient financial resources to meet basic needs such as food, housing, and healthcare, reflecting significant inequality in access to opportunities.

General Dwight D. Eisenhower

A prominent military general and the 34th President of the United States, known for his role in World War II and his two-term presidency during the Cold War era.