At year-end the price-earnings ratio of general motors was, Accounting Basics

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At year-end the price-earnings ratio of general motors was

Question: 1. At year-end, the price-earnings ratio of General Motors was 11.3, and the price-earnings ratio of Microsoft was 28.14. Which company did the stock market favor? Explain.

2. What is the formula for computing the payout ratio? Do you expect this ratio to be high or low for a growth company?

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Accounting Basics: At year-end the price-earnings ratio of general motors was

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Accounting Basics: At year-end the price-earnings ratio of general motors was

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