Longview Corporation has a stock price of $60, has issued 1,000,000 shares of stock, has retained earnings of $3 million dollars, and a dividend yield of 5 percent. The price-earnings ratio for Longview stock is
a. 20, which is high compared to historical standards of the market.
b. 20, which is low compared to historical standards of the market.
c. 10, which is low compared to historical standards of the market.
d. 10, which is high compared to historical standards of the market.
c
You might also like to view...
Consumers who do not consistently discount the future over time are likely to ________
A) under-report their taxable income B) be unprepared financially for retirement C) opt in to employer-sponsored savings plans D) make excessive sacrifices on behalf of their children
If Gorgeous Sands Resort has a constant marginal cost of $20,000 for each resort unit and a constant marginal cost of $500 for operating each resort unit, what is Gorgeous Sands Resort's long-run marginal cost per resort unit?
A) $19,500 B) $20,500 C) $500 D) $20,000