P/E ratio can be calculated by dividing the market price of share by the earnings per share ,it indicates how much the investors are willing to pay for a $1 of earnings from the share.
A high P/E ratio indicates a growth stock as it signifies that the investors believe that there is a lot of growth opportunities in this stock ,hence they are willing to pay a high price for it. Investing in growth stock can be a risky proposition.
So the correct option is option a.
A value stock is a stock whose P/e is low. It indicates undervalued stocks.
Large cap stocks are stock whose market capitaization is high. Nothing is mentioned about market capitalisation in this question.
A company with a P/E Ratio of 40 is considered a stock. Growth Value Large Cap...
A company with a P/E Ratio of 40 is considered a stock. Growth Value Large Cap Technical
14.a company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has____ a. an anticipated earning growth rate which is less than that of the average firm b.less predictable earnings growth than that of the average firm. c.greater cyclicality of earnings growth than that of the average firm. d.a dividend yield which is less than that of the average firm. e. none of the above. 15.which of the fllowing combinations...
3. Stocks that pay a high dividend are called ____________ stocks. Growth Large Cap Income Speculative 4. The stock price will fall by the amount of the dividend on the _____________. Declaration Date Ex Dividend Date Payment Date Record Date 5. What is the value of a right if the stock (including the right) sells for $60 and it takes four rights to buy stock for $40? a) $4 b) $4.5 c) $5 d) $6.67
The P/E ratio on a stock market is 14. The underlying real earnings growth rate is 1.4%, at a constant long-run inflation rate of 2.7%. What is the firm's nominal long-run cost of capital?
company y:
first drop down options are-
a. an income
b. a large cap
c. a bluechip
d. a small cap
second drop down options are a. high or b. low
company x:
a. a small cap
b. a growth
c. a speculative
d. a large cap
second drop down options:
a. between 2-10 billion
b. more than 15 billion
c. more than 10 billion
d. less than 2 billion
the graph drop down for both parts is either company...
Question 22 than break even investment and the cap a bor ratio Consider the Solow growth model with tabor force grower the capital.labor ratio is below the steady-state value Investment is greater Increases greater decreases D Question 23 in the Slow growth model without bor force or technology growth, the seady stoccurs when investment depreciation • depreciational the club1 D Question 24 rowth wo change in the capit a to alto in the low growth model without labor force or...
The P/E ratio on a stock market is 12. The underlying real earnings growth rate is 1.6%, at a constant long-run inflation rate of 2.7%. What is the firm's nominal long-run cost of capital? Carry out calculations to at least 4 decimal places. Enter percentages as whole numbers. Example: 3.03% should be entered as 3.03. Do not include commas or dollar signs in numerical answers.
The P/E ratio for Mailbu Boats (MBUU) is 13.24 and the expected growth rate is 16%. If the plowback ratio is 80% what is the current required rate of return (market capitalization rate) of the stock?
The P/E ratio for Mailbu Boats (MBUU) is 13.24 and the expected growth rate is 16%. If the plowback ratio is 80% what is the current required rate of return (market capitalization rate) of the stock?
The probability distribution of percent returns for investing in a large-cap stock fund and investing in a long-term government bond fund. Probability f(x,y) Stock Fund (x) Bond Fund (y) .20 50 80 .50 30 50 .30 40 60 Compute the expected value, variance and standard deviation for x and y. Which fund is less risky? Explain.