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1.) A)The P/E ratio of stock A is 25. The P/E ratio of stock B is 45....

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Finance

1.)

A)The P/E ratio of stock A is 25. The P/E ratio of stock B is45. Their expected returns are the same. Why is the P/E ratio ofstock B higher than that of stock A?

B) The P/E ratio of stock A is 25. The P/E ratio of stock B is45. Their expected growth rate is the same. Why is the P/E ratio ofstock B higher than that of stock A?

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PE ratio is generally used as an indicator of future prospects of the company PE ratio is the relation of market price of share as a multiple of the Earnings Per Share EPS A high PE ratio is an    See Answer
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1.)A)The P/E ratio of stock A is 25. The P/E ratio of stock B is45. Their expected returns are the same. Why is the P/E ratio ofstock B higher than that of stock A?B) The P/E ratio of stock A is 25. The P/E ratio of stock B is45. Their expected growth rate is the same. Why is the P/E ratio ofstock B higher than that of stock A?

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