All of the following are economic factors that can cause a firm's price-earnings ratio to be higher than that of other firms in the same industry except:
A) when investors expect that the firm's strategy enables it to generate and sustain greater profitability for a given cost of equity capital
B) when the firm earns the same profitability but with lower risk and, therefore, a lower cost of equity capital
C) a firm's business model that enables it to generate faster growth in earnings provided the growth creates positive residual ROCE
D) a firm's business model that results in slower growth in earnings and this creates negative residual ROCE

Question

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The Answer of All of the following are economic factors that can cause a firm's price-earnings ratio to be higher than that of other firms in the same industry except:
A) when investors expect that the firm's strategy enables it to generate and sustain greater profitability for a given cost of equity capital
B) when the firm earns the same profitability but with lower risk and, therefore, a lower cost of equity capital
C) a firm's business model that enables it to generate faster growth in earnings provided the growth creates positive residual ROCE
D) a firm's business model that results in slower growth in earnings and this creates negative residual ROCE

All of the Following Are Economic Factors That Can Cause