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he P/E (price to earnings) ratio show us the expected price of a stock based...

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Accounting

he P/E (price to earnings) ratio show us the expected price of a stock based on its earnings. Investors tend to invest in a company with a high P/E ratio and buy its shares. On the other hand, reported earnings are often reconstructed by the companies by using some accounting techniques in order to attract investors. Which are those accounting techniques which can artificially help companies change the P/E ratio trend line?

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