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That ratio of 6 means investors are willing to pay how much for each unit of earnings?
ATen
BSix
CFour
DTwo
Answer & Solution
Correct answer: B. Six
1. The ratio itself is the answer.
2. Six is paid per unit of earnings.
3. They pay six.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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