What does it indicate about the company

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Question - Derby Cars Inc. (DCI) most recent financial statements reported a net income of $4.70 and no preferred shares outstanding,

1. If DCI has a market stock price of $18, what is DCI's P/E ratio?

2. If the industry average is above DCI's P/E, what does it indicate about the company?

3. What are two factors that can influence a firm's P/E ratio?

Reference no: EM133105909

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