Taggart Company has a P/E ratio of 13 in year 2016 and 12.5 in 2017.In 2018,its P/E ratio is 19.5.The best way to interpret these data is to conclude that:
A) the stock is overpriced and should be sold.
B) the stock has great growth capacity and should be bought.
C) other financial results and news should be examined to determine the cause of the P/E ratio change.
D) the stock is underpriced and should be bought.
Correct Answer:
Verified
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