ABC Corporation and DEF Corporation Operate in the Same Industry

ABC Corporation and DEF Corporation operate in the same industry. ABC has a P/E ratio that is 50% higher than DEF Corporation. Which of the following account for some of the difference in the observed P/E ratios?
I. ABC uses more conservative accounting principles
II. ABC has a higher cost of equity capital
III. ABC has higher expected future growth
IV. DEF uses FIFO and ABC uses LIFO

A) I, II, III and IV
B) I, III and IV
C) I and III
D) II, III and IV