Worcester Corporation has a P/E ratio of 15. Natick Corporation is in the same industry as Worcester, but has a P/E ratio of 20. Possible interpretations of this discrepancy include
A) Natick corporation has higher earnings per share.
B) Worcester corporation is overpriced.
C) Investors expect Natick to grow faster than Worcester.
D) Natick's share price is higher than Worcester's.
Correct Answer:
Verified
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