High price
High price multiples:
A: May indicate the firm is overvalued
B: May indicate high expected future growth
C: May indicate high levels of earnings or book value
D: All of the above are true
E: A and B are true, but C is not true
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1 consider a c corporation the corporation earns 5 per share before taxes after the corporation has paid its
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susan has a 5-year ldquobunny bondrdquo with a yield to maturity of 64 that will be automatically reinvested next month
high price multiplesa may indicate the firm is overvaluedb may indicate high expected future growthc may indicate high
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