The correct answer is:-
C. Provided other shares in the market are still trading at average P/E, this company's stock relatively expensive and should not be bought at this time....
Price-to-Earnings ratio is often used to gauge the relative cost of one stock to another with...
Price-to-Earnings ratio is often used to gauge the relative cost of one stock to another with respect to earnings. The average P-to-E (or P/E) is 15 to 25 for most companies in the market. If a company is trading with a P/E of 85, should you buy the stock? a. Yes, the shares are cheap. b. Provided other shares in the market are still trading at the average P/E, this company's stock is relatively expensive and should not be bought...
Price-to-Earnings ratio is often used to gauge the relative cost of one stock to another with respect to earnings. The average P-to-E (or P/E) is 15 to 25 for most companies in the market. If a company is trading with a P/E of 85, should you buy the stock? O a. Yes, the shares are cheap. b. The P/E is a bad proxy for value and is never used in reality. o c. Provided other shares in the market are...
30 The P/E ratio measures the O intrinsic value of the stock relative to earnings per share market price of the stock relative to retained earnings market value of the stock relative to earnings per share O book value of the stock relative to earnings per share
A firm with earnings per share of $8 and a price-earnings ratio of 10 will have a stock price of O $80.00 O $18.00 O $6.00 the market assigns a stock price independent of EPS and the P/E ratio.
5. how heavy was the trading of Smith's stock today relative to the normal level of trading? relatively heavy trading average trading relatively light trading Smith Enterprises (DAX: SME) Last Trade: Trade Time: Change: Prev Close: Open Bid Ask: ly Target Est: 55.40 $51.63 4:00 PM ET ??? (12.09%) 46.06 47.25 N/A N/A Day's Range: 47.22 - 51.96 52wk Range 25.48-60.71 Volume: Avg Vol (3m 629,072 Market Cap: P/E (ttm): EPS (ttm): Div & Yield: 1,419,317 1.63B 23.58 2? 0.20...
The price-earnings ratio is sometimes used as an indicator to Select one: O a. buy shares b. all of the choices C. sell shares d. hold shares
The price/earnings ratio, or multiplier approach, may be used for stock valuation. Explain this process and describe how the "multiplier" varies from the one available in the stock market quotation pages
Sve & 10.00 points Problem 17-16 Relation of rights to EPS and the price earnings ratio [LO17-3 The current market price of Waker common stock is $88 per share rights-on. The company's net income this year is $26.00 million. A rights offering has been announced in which 720.000 new shares will be sold at $00 50 per share. The subscription price plus mine rignts is needed to buy ane of the new shares (Do not round intermediate caleulations and round...
Problem 10-07 A stock is currently trading for $36. The company has a price-earnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $46. The company announces that it will use $300 million to repurchase shares a. After the repurchase, what is the value of the stock, according to your model? Do not round intermediate calculations. Round your answer to the nearest cent. b. After the repurchase, what is the actual...
11. The following about the price earnings ratio (P/E) is/are correct except: (2 marks) a. It is computed by multiplying the market price of the share by its earnings per share. b. PE ratio is used to discuss the investment possibility of a given enterprise C. The greater the P/E ratio, the better the perception of investors regarding the future growth of the firm. d. If a company's P/E ratio drops steadily this indicates that investors are confident of the...