Investors may use P/E and price/sales ratios to value stocks. If this analysis is used, which of the following is desirable?
A) a high P/E and a low price/sales ratio
B) a high P/E and a high price/sales ratio
C) a low P/E and a low price/sales ratio
D) a low P/E and a high price/sales ratio
Correct Answer:
Verified
Q9: If the financial markets were not efficient,
A)all
Q16: The PEG ratio multiplies a stock's earnings,
Q17: According to the dividend-growth model, the valuation
Q18: According to the efficient market hypothesis, purchasing
Q19: If the anticipated return exceeds the required
Q20: High P/E stocks should be preferred because
Q23: As an investor you have a required
Q24: Presently, Stock A pays a dividend of
Q25: Higher required returns
A)decrease stock prices
B)are required by
Q26: The price to sales ratio may be
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