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If the market multiple (P/E ratio) is 18.0 and the P/E ratio of a company is 21.6, What is the company's relative P/E? A) 0.83 B) 1.20 C) 1.75 D) 0.92

If the market multiple (P/E ratio) is 18.0 and the P/E ratio of a company is 21.6, What is the company's relative P/E? A) 0.83 B) 1.20 C) 1.75 D) 0.92

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
Problem 5DQ
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If the market multiple (P/E ratio) is 18.0 and the P/E ratio of a company is 21.6, What is the company's relative P/E? A) 0.83 B) 1.20 C) 1.75 D) 0.92
Transcribed Image Text:If the market multiple (P/E ratio) is 18.0 and the P/E ratio of a company is 21.6, What is the company's relative P/E? A) 0.83 B) 1.20 C) 1.75 D) 0.92
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