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One problem with the price-earnings ratio commonly reported is that: Group of answer choices it...

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Finance

One problem with the price-earnings ratio commonly reported is that:

Group of answer choices

it divides share price, which reflects the present value of future earnings by historical earnings.

it divides share price, which reflects the present value of book value by historical earnings.

it does not take into consideration the present value of future earnings.

it is based on analysts' expectations.

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