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<p>Which one of the following statements about Price-earning (P/E) ratio is true?</p> <p>A. A company with high growth opportunities ordinarily has a high P/E ratio</p> <p>B. A P/E ratio has more meaning when a firm has losses than when it has profits.</p> <p>C. A P/E ratio has more meaning when a firm has abnormally low profits in relation to its assets base.</p> <p>D. A P/E ratio expresses the relationship between a firm's market price and its net sales</p>
Answer A.
Regards,
Joshi Mathew
CIA
A. The company with higher growth opportunities ordinarily have a higher P/E ratio.
the right answer is the option A.
A. A company with high growth opportunities ordinarily has a high P/E ratio
