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Which of the following is/are limitations of the price/earnings ratio? Select all that apply.

A

The price/earnings ratio standardizes the value of one dollar of earnings.

B

Price/earnings ratios vary widely between various industries and sectors, and therefore limits their use as a device for comparison.

C

Debt, leverage, and earnings can skew the price/earnings ratio.

D

Inaccurate inputs can skew the ratio.

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