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Company X’s stock price is currently $50 per share with an earnings per share (EPS) of $2.50. Company Y’s stock price is currently $18.50 per share with an EPS of $1.30. The earnings of both companies are expected to grow. On the basis of the companies’ price/earnings (p/e) ratios - which company’s stock is more appropriate to buy?

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Company X’s stock price is currently $50 per share with an earnings per share (EPS) of $2.50. Company Y’s stock price is currently $18.50 per share with an EPS of $1.30. The earnings of both companies are expected to grow. On the basis of the companies’ price/earnings (p/e) ratios - which company’s stock is more appropriate to buy?






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