An investor is more likely to buy a firm's stock if the firm's income statement shows ________ and if its balance sheet shows ________
A) a large net worth; a large price-earnings ratio
B) a large after-tax profit; a large net worth
C) a large price-earnings ratio; a large dividend yield
D) low opportunity costs; large liabilities
Answer: B
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What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
A) print more money B) encourage the stock market C) sell more government bonds D) buy back government bonds on the open market
Baseball teams shut down in the winter. This is an example of
A) permanently leaving the industry because price is less than average fixed cost. B) temporarily leaving the industry because price is less than average variable cost. C) temporarily leaving the industry because price is less than average fixed cost. D) permanently leaving the industry because price is less than average variable cost.