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The Average Japanese P/E Ratio Was Reported as Between 40

Question 54

Multiple Choice

The average Japanese P/E ratio was reported as between 40 and 100 in recent years while the average U.S. P/E ratio was 25. The reason for the higher Japanese P/E ratio has been partially explained by:


A) growth opportunities over stated earnings.
B) understated earnings and low interest rates.
C) overstated earnings and low interest rates.
D) understated earnings and overstated growth opportunities.
E) low interest rates and greater growth opportunities.

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