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2 points Which of the following statements is true regarding the PE ratio? It can be calculated by
dividing the price of a share of stock by the companies earnings for the period. Companies with a
high PE ratio are generally considered growth stocks while those with a low PE ratio are value
stocks. A low PE ratio is a hint to investors that they shouldn't invest in this company. All
answers are correct.

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2 points Which of the following statements is true regarding the PE ra.docx

  • 1. 2 points Which of the following statements is true regarding the PE ratio? It can be calculated by dividing the price of a share of stock by the companies earnings for the period. Companies with a high PE ratio are generally considered growth stocks while those with a low PE ratio are value stocks. A low PE ratio is a hint to investors that they shouldn't invest in this company. All answers are correct.