Maneesh 30 April 2020 at 16:04 PM

Which one of the following statements about the price-earnings (P-E) ratio is correct?

A) A P-E ratio has more meaning when a firm has losses than when it has profits

B) A company with high growth opportunities ordinarily has a high P-E ratio.

C) A P-E ratio expresses the relationship between a firm's market price and its net sales.

D) A P-E ratio has more meaning when a firm has abnormally low profits in relation to its asset base.