Question

New-economy companies generally have higher O A. than old-economy companies. book value per share O B. P/E multiples OC....


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Transcribed: New-economy companies generally have higher O A. than old-economy companies. book value per share O B. P/E multiples OC. profits O D. asset values

Answer

PE ratio or profit earning ratio refers to the profit earned by a particular stock divided by the earnings per share.

Answer ; PE ratio or multiples.

New economy companies generally have higher PE ratio over the older companies because new companies generally earns supernatural profits after its launching which increase its earning per share rate and thus increases ita PE ratio.

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