A low P/E for a stock indicates that
a. people may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.
b. its dividends have been low so that no one is willing to pay very much for it.
c. the corporation is possibly overvalued.
d. All of the above are correct.
a
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Which of the following statements is true?
A) At wages below the equilibrium wage rate, quantity demanded of labor exceeds the quantity supplied of labor. B) At wages above the equilibrium wage rate, quantity demanded of labor exceeds the quantity supplied of labor. C) At the equilibrium wage rate, quantity demanded of labor exceeds the quantity supplied of labor. D) At the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor.
Advocates of floating rate suggested it is favorable for economies for all of the following reasons EXCEPT
A) it discourages attack from foreign exchange speculators because of the fact that exchange rate adjustment is immediate. B) it helps stabilize the shock effect on unemployment in case of economic changes such as fall in export demand. C) it automatically matches the domestic inflation with ongoing foreign inflation. D) it gives every country the opportunity to guide its own monetary conditions at home. E) it brings the LR exchange rate to the level predicted by PPP without government policy decisions.