Taggart Company has a P/E ratio of 13 in year 2016 and 12.5 in 2017. In 2018, its P/E ratio is 19.5. The best way to interpret these data is to conclude that:

A. the stock is underpriced and should be bought.
B. other financial results and news should be examined to determine the cause of the P/E ratio change.
C. the stock has great growth capacity and should be bought.
D. the stock is overpriced and should be sold.


Answer: B

Business

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