Vidyalelo
Commerce · Q282

Financial Management

Graduate and Post Graduate · Commerce · question 282

Q282

Low price for earning ratio is result of

A.
low risky firms
Answer
B.
high risky firms
C.
low dividends paid
D.
high marginal rate

Answer: Option A

Solution

Answer: Option A
Solution:
Low price for earning ratio is result of low risky firms. The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share price to the company's earnings per share.