There is little relationship between R&D expenditures as a percent of sales, and growth of earnings per share.

Name: There is little relationship between R&D expenditures as a percent of sales, and growth of earnings per share.
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Question

Quizplus · Accepted Answer

Consistently growing companies often have higher P/E ratios than cyclical companies, because investors are most confident in their future earnings. Reinvestment in R&D helps to ensure the growth in earnings per share.

There Is Little Relationship Between R&D Expenditures as a Percent