Companies e and p each reported the same earnings per share (eps), but company e's stock trades at a higher price. which of the following statements is correct? a. company e probably has fewer growth opportunities. b. company e trades at a higher p/e ratio. c. company e is probably judged by investors to be riskier. d. company e must pay a lower dividend. e. company e must have a higher market-to-book ratio.

Company E trades at a higher P/E ratio (b)

Explanation:

P/E ratio is the price you must pay per unit of current earnings which is based on the investor's future expectation of the market.

It shows the relationship between a company’s stock price and earnings per share (EPS).

A company with higher P/E ratio will sell its share more expensively than the one with lower P/E ratio.

lives by a moral and ethical code

a. primarily outdoors, responding to emergencies and protecting people.

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