The PE ratio:
A. Indicates how a stock is trading in relation to cumulative earnings over the life of the company.
B. Tends to be higher for growth stocks.
C. Tends to be higher for value stocks.
D. Typically is less than 1.
Answer: B
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The selling price of a product is originally greater than the variable cost of producing it. Assume that the selling price and the variable cost per unit both increase 20% and fixed costs do not change. What is the effect of this change on the contribution margin per unit and the contribution margin ratio?
a. Contribution margin per unit and the contribution margin ratio both remain unchanged. b. Contribution margin per unit and the contribution margin ratio both increase. c. Contribution margin per unit increases and the contribution margin ratio remains unchanged. d. Contribution margin per unit decreases and the contribution margin ratio remains unchanged.
Mr. Hill, who runs a key-chain manufacturing unit, buys raw materials from his supplier during the first week of every month. The supplier's policy states that all payments need to be cleared within 50 days of buying the materials. This schedule ensures that Mr. Hill gets an extended period to make payments thus controlling when the payment is made. Which of the following strategies is Mr. Hill using to control cash outflow?
A. Gaming the payment process B. Timing the purchase C. Offering trade discount D. Taking a consignment
The basic mission of the _____ is topromote global economic cooperation and stable growth.
A. World Bank B. World Trade Organization C. International Monetary Fund D. General Agreement on Tariffs and Trade
Social networks can be diagrammed to illustrate the interconnections of network units. LinkedIn members represent ______ who are connected via ______.
a. Ties, nodes. b. Nodes, ties. c. Intermediaries, links. d. Links, intermediaries. e. None of these.