Which is true regarding the price-earnings ratio

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Problem 1: Which of the following is true regarding the price/earnings ratio?

Option 1: The price/earnings ratio is equal to earnings per share divided by sales.

Option 2: High-growth companies are likely to have a high price/earnings ratio.

Option 3: Low-growth companies are likely to have a high price/earnings ratio.

Option 4: Information used to calculate it is found on the balance sheet.

Reference no: EM132959839

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