Alpha Corporation has a price of $5 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio which is
a. high, perhaps indicating that people expect future earnings to rise.
b. high, perhaps indicating that people expect future earnings to fall.
c. low, perhaps indicating that people expect future earnings to rise.
d. low, perhaps indicating that people expect future earnings to fall.
d
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A risk-neutral individual is offered a gamble that promises a gain of $1000 with probability 0.25 and a loss of $300 with probability 0.75 . Given this situation, he or she will: a. definitely take the gamble
b. definitely not take the gamble. c. definitely take the gamble if his or her income is high enough. d. take an action that cannot be determined given the information available.
A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol. If they switch to selling tickets per drink, will overall consumption at next year's festival decrease?
A. No, because the marginal cost per extra beer will increase for consumers. B. No, because the marginal cost per extra beer will decrease for consumers. C. Yes, because the marginal cost per extra beer will increase for consumers. D. Yes, because the marginal benefit per extra beer will increase for consumers.
When a decrease of a firm's scale of production leads to lower average costs per unit produced, there is an increasing return to scale.
Answer the following statement true (T) or false (F)
Aggregate expenditure equals
What will be an ideal response?