A ________ P/E suggests that investors are expecting higher earnings growth in the future.

Name: A ________ P/E suggests that investors are expecting higher earnings growth in the future.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high P/E ratio suggests that investors are willing to pay more for each dollar of earnings, indicating that they expect higher earnings growth in the future. This is because the company's future earnings are expected to be higher, and investors are willing to pay a premium for those potential earnings.

A ________ P/E Suggests That Investors Are Expecting Higher Earnings