A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has ________.

Name: A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has ________.
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Question

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A higher P/E ratio often indicates that investors expect higher earnings growth in the future compared to the average firm, which typically results in a lower dividend yield as the company may reinvest earnings for growth rather than pay them out as dividends.

A Company Whose Stock Is Selling at a P/E Ratio