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ABC Co and DEF Co are listed companies in the same country. Their P/E ratios and share prices are shown below.
Which of the following statements will best explain the higher P/E ratio of DEF Co? A. DEF Co is a much larger company than ABC Co. B. DEF Co has higher earnings per share growth prospects than ABC Co. C. DEF Co is regarded as a higher risk investment than ABC Co. D. DEF Co retains a higher proportion of its annual post-tax profits than ABC Co. |