单选题
A fund manager compiles the following data on two companies:
| Comoanv A | Comoanv B | |
| Return on assets | 10.9% | 9.0% |
| Return on equity | 15.4% | 14.3% |
| Dividend payout ratio | 0.35 | 0.30 |
| Required return on equity | 13.0% | 12.4% |
| Weighted average cost of capital | 11.8% | 11.7% |
Based on the information provided, the most accurate conclusion is that Company A's stock is more attractive relative to that of Company B's because of its
【正确答案】
A
【答案解析】
From the computations shown below Company A's stock is more attractive because of its smaller P/E ratio than Company B's stock.
