Stock in Frozen Dreams, an ice cream manufacturer, has a price to earnings ratio of 24 . Is this comparatively high or low? What are two explanations for the size of this company's price to earnings ratio?
Its price to earnings ratio is comparatively high. It may be that people expect its earnings to rise or that the stock is overvalued.
You might also like to view...
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel
If the market is competitive and unregulated, the equilibrium quantity of steel is ________ tons and the efficient quantity of steel is ________ tons. A) 2; 2 B) 2; 4 C) 4; 2 D) None of the above answers is correct.
When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A) consumer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
The National Labor Relations Act (Wagner Act)
A) prohibited the creation of company unions. B) guaranteed workers the right to organize. C) set the minimum wage at $5.15 an hour. D) set the length of the workweek at 40 hours.
Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
If Cindy produces 20 sweaters per day, what is her average fixed cost of production? A) $3.00 B) $3.33 C) $8.00 D) $11.00