A Low P/E for a Stock Indicates That

question 133

Multiple Choice

A low P/E for a stock indicates that

• A)people may expect earnings to fall in the future,perhaps because the firm will be faced with increased competition.
• B)its dividends have been low so that no one is willing to pay very much for it.
• C)the corporation is possibly overvalued.
• D)All of the above are correct.

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Definitions:

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