单选题
A fund mananaer compiles the followincg data on two companies:
| Company A | Company B | |
| Return on assets (ROA) | 10.9% | 9.0% |
| Return on equity (ROE) | 15.4% | 14.3% |
| Dividend pavout ratio | 0.35 | 0.30 |
| Required rate of return | 13.0% | 12.4% |
| Weighted average cost of capital | 11.8% | 11.7% |
The best conclusion the fund manager can make is that Company A's stock is more attractive than Company B's stock because of its:
【正确答案】
B
【答案解析】
From the following computations, Company A's stock is more attractive than Company B's stock because of its smaller P/E.
