Which of the following might be interpreted as a signal that stock price is currently too high?
A)An abnormally low dividend yield
B)A high E/P ratio
C)A low book value per share
D)A low P/E ratio

Question

Quizplus · Accepted Answer

A low dividend yield indicates that investors are not receiving a significant return on their investment in the form of dividends, which may suggest that the stock price is too high. High E/P ratios and low P/E ratios are not necessarily indicative of an overvalued stock, as they can be influenced by a variety of factors. A low book value per share may suggest that the company's assets are not worth as much as the current stock price, but it is not a definitive signal that the stock is overvalued.

Which of the Following Might Be Interpreted as a Signal