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High price to earning ratio shows company's

A. low dividends paid

B. high risk prospect

C. high growth prospect

D. high marginal rate

Answer: Option C

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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