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When Companies Reach the Crossover Point

Question 84

Multiple Choice

When companies reach the crossover point,


A) they have filed for an initial public offering (IPO) .
B) their stock prices increase, because their earnings are now more predictable.
C) their stock prices plummet, because price-earnings ratios collapse because of lower growth expectations.
D) sales expansion and earnings begin to rise at an increasing rate.
E) sales grow at a rate equal to the economy, as measured by the long-term trend in gross domestic product (GDP) .

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