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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Consider the perfectly competitive firm in the figure above. At the profit maximizing level of output, the firm will
A) make an economic profit equal to the area ABCD. B) incur an economic loss equal to the area ABCD. C) make zero economic profit. D) make an economic profit equal to the area AECD.
In the short-run macro model, if GDP is $5 trillion and aggregate expenditure is $4 trillion,
a. GDP will rise because inventories will rise b. GDP will fall because inventories will fall c. GDP will remain the same because this is an equilibrium d. investment will decrease e. the government will have to increase taxes
From the standpoint of society as a whole, rent seeking is
a. counterproductive because it takes resources away from the creation of wealth in the private sector. b. counterproductive because it fails to alter public policy. c. productive because each interest group gains more than they spend on rent-seeking activities. d. productive because the resources used in rent seeking have no opportunity cost to society.
The factory conditions of 19th century England that Karl Marx described may be found in his book, _______.
Fill in the blank(s) with the appropriate word(s).