Identify and explain three potential flaws inherent in this, Finance Basics

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Identify and explain three potential flaws inherent in this

THE PRICE-EARNINGS RATIO. In practice, it is common to observe price- earnings ratios measured as current period price divided by trailing twelve months (or most recent annual) earnings per share. Identify and explain three potential flaws inherent in this measurement of the price-earnings ratio as a valuation multiple.

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Finance Basics: Identify and explain three potential flaws inherent in this

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