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Suppose Sarah Lee Corporation Stock Has a P/E Ratio of 8.This

Question 131

Multiple Choice

Suppose Sarah Lee Corporation stock has a P/E ratio of 8.This P/E ratio is relatively


A) low,indicating that buyers may expect earnings to rise.
B) low,indicating that buyers may expect earnings to fall.
C) high,indicating that buyers may expect earnings to rise.
D) high,indicating that buyers may expect earnings to fall.

Correct Answer:

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