A Company Whose Stock Is Selling at a P/E Ratio

question 11

Multiple Choice

A company whose stock is selling at a P/E ratio greater than the P/E ratio of the market most likely has

• A) greater cyclicality of earnings growth that that of the average company.
• B) less predictable earnings growth than that of the average company.
• C) an expected earnings growth which is less than that of the average company.
• D) a dividend yield which is less than that of the average company.

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