Which of the following is not a reason why price-earnings ratios would differ across firms?
A) Risk
B) Profitability
C) Growth
D) Operating leverage

Name: Which of the following is not a reason why price-earnings ratios would differ across firms? A) Risk B) Profitability C) Growth D) Operating leverage
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Question

Quizplus · Accepted Answer

Price-earnings ratios are affected by risk, profitability, and growth. Operating leverage, on the other hand, relates to a firm's cost structure and has no direct impact on its price-earnings ratio.

Which of the Following Is Not a Reason Why Price-Earnings