Indicate whether each of the following items is true or false. ________ a) Many successful corporations do not pay dividends to their stockholders.________ b) Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock.________ c) The price-earnings (P/E) ratio is computed by dividing the earnings per share by the market price per share.________ d) As a general rule, the higher the P/E ratio, the greater is the optimism for future growth of the corporation.________ e) The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.
What will be an ideal response?
a) T b) F c) F d) T e) F
a) This is true. Many corporations retain earnings for future growth rather than pay dividends to stockholders.
b) This is false. While it is useful to study a company's financial statements, they do not necessarily predict future movements in a stock's market price.
c) This is false. The price-earnings ratio is equal to the market price per share divided by earnings per share.
d) This is true. A high price-earnings ratio generally indicates optimism about a company's future growth.
e) This is false. The financial statements indicate the number of issued shares, but they do not indicate how widely held the shares are.
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The projected sales for a product or service for any price customers are willing to pay is charted by the ________
A) demand curve B) variable cost C) target cost D) break-even pricing E) experience curve
The par value of stock is an arbitrary per share amount defined in many states as legal capital
Indicate whether the statement is true or false
In what way is the market share objective viable?
What will be an ideal response?
Possible communication channels for customer service include all of the following EXCEPT this:
a. Websites b. Personal interaction c. Print media d. Marketing materials