Firms with higher expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with lower expected growth rates.

A. higher than
B. equal to
C. lower than
D. There is not necessarily any linkage between risk and P/E ratios.


A. higher than

Business

You might also like to view...

A(n) ________ is a scale whose numbers serve only as labels or tags for identifying and classifying objects with a strict one-to-one correspondence between the numbers and the objects

A) ordinal scale B) interval scale C) ratio scale D) nominal scale

Business

What are the “The Three Foes of Self-Management”? Based on your own experiences, which of these are the biggest problems?

What will be an ideal response?

Business

Monopolies are a danger to the market economy system because they tend to stifle economic growth.

Answer the following statement true (T) or false (F)

Business

A company has 75,000 shares of $1 par, 8% preferred stock. The 8% refers to the stock's:

A) market rate. B) dividend rate. C) paid-in capital rate. D) interest rate.

Business