Company A has a price-earnings (P/E) ratio of 15. Company B has a price-earnings ratio...

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Finance

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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