Q299
High price to earning ratio shows company's
A.
low dividends paid
B.
high risk prospect
C.
high growth prospect
AnswerD.
high marginal rate
Answer: Option C
Solution
Answer: Option C
Solution:
High price to earning ratio shows company's high growth prospect. The price-to-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings.