Which of the following scenarios could lead to a decrease in a company's P/E ratio?
Question
Which of the following scenarios could lead to a decrease in a company's P/E ratio?
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Solution 1
A decrease in a company's Price to Earnings (P/E) ratio can occur due to several scenarios:
- Increase in Earnings: The P/E ratio is calculated as the market value per share divided by the earnings per share (EPS). If a company's earnings increase while the market value per share remains constant, Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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