39. For a listed company, if profits are expected to rise, then all other things equal, the following will normally happen: a. the price-earnings ratio will fall b. the price-earnings ratio will rise c. EPS will fall d. Both a and c will happen simultaneously
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This would generally lead to an increase in the company's stock price as investors would be willing to pay more for a share of a company that is expected to have higher earnings in the future. Secondly, the price-earnings ratio (P/E ratio) is calculated by Show more…
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