Company A has a price-earnings (P/E) ratio of 15. Company B has a price-earnings ratio...
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Company A has a price-earnings (P/E) ratio of 15. Company B has a price-earnings ratio of 20. Thus, you can state with certainty that one share of stock in company B:
a. earns a greater profit per share than does one share of company A
b. has a higher market price per dollar of earnings than does one share of company A
C. represents a larger percentage of firm ownership than does one share of company A
d. has a higher market price than one share of stock in company A
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