Growth stocks are frequently described as having which one of the following characteristics?
A) high dividends
B) a value orientation
C) high P/E ratios
D) low cash flows per share
E) low retention ratios

Question

Quizplus · Accepted Answer

Growth stocks are typically characterized by high P/E ratios, which indicates that the market expects the company to experience strong earnings growth in the future. High dividends are typically associated with value stocks, which are more focused on providing steady income rather than rapid growth. Low cash flows and retention ratios are generally considered negative signals for any type of stock.

Growth Stocks Are Frequently Described as Having Which One of the Following