Companies A and B are both in the same industry and generally compete against each other in the marketplace
Stock A has a P/E ratio of 15 while Stock B's P/E is 21. Which of the following is not true about the relative positioning of Stock A and Stock B?
A) Stock B has lower perceived risk.
B) Investor's are willing to pay a higher price for shares in Company B.
C) Company A business performance is probably not as strong as Company B performance.
D) All of the statements are correct.
Answer: A
You might also like to view...
Which of the following is a disadvantage of a just-in-time management system?
A) It results in a decrease in production space. B) It increases the inventory cost. C) The risk of the inventory becoming obsolete is very high. D) The users of this system sometimes lose sales because of little or no inventory buffers.
The guaranteed monthly income provided to a retired employee is known as the premium pay
Indicate whether the statement is true or false