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
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Suppose there has been an increase in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) decrease; increase to its initial level B) increase; increase further C) increase; decrease to its initial value D) decrease; decrease further
If the actual price were below the equilibrium price in the market for bread, a:
A) surplus would develop that cannot be eliminated over time. B) shortage would develop, which market forces would eliminate over time. C) surplus would develop, which market forces would eliminate over time. D) shortage would develop, which market forces would tend to exacerbate.
For a firm, marginal revenue minus marginal cost is equal to
a. profit. b. average total cost. c. change in profit. d. change in average revenue.
People will want to hold more money if the price level
a. or if the interest rate increases. b. or if the interest rate decreases. c. increases or if the interest rate decreases. d. decreases or if the interest rate increases.