Question

THigh tech companies tend to have higer_____ than Electric Utilities

Book value

Real Estate golding

Dividend yields

P/E multiples

Answer 1

Tech companies tend to have a higher -

P/E multiple.

This is because tech companies tend to have a lot of growth opportunities in the form of automation, efficient workflows that they bring with a lot of technology and they dont have much risk. That is why their price is factored in a high P/E multiple.

For example - a company like Google tends to have a higher PE multiple than any other electric utilities.

The other three options are incorrect because tech companies don't generally have these attributes higher

I hope this helps

Took a lot of effort to write detailed answer

Please press the like button

Thanks & Regards