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Which of the Following Would Most Likely Represent a Buying

Question 52

Multiple Choice

Which of the following would most likely represent a buying opportunity for a growth stock investor?


A) LULU has a P/E of 35 and the company announces continued earnings growth of 20%.
B) ED with a P/E of 12 announces an increase of 2% in its quarterly dividend.
C) CP's P/E is 9 compared to the industry average of 15 and its EPS growth is the same as the rest of the industry.
D) NT pays no dividend, has recorded a loss of $0.15 a share and a positive cash flow of $0.20 a share.
E) None of these represent a buying opportunity for a growth stock investor.

Correct Answer:

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