Which of the following most likely explains why a corporation's stock trades at a very high price-earnings ratio?
A) Investors expect the corporation to have higher earnings in the future.
B) The corporation pays a very low dividend on its stock.
C) The corporation has several classes of stock outstanding.
D) The corporation is large with very low risk.
Correct Answer:
Verified
Q144: Factors affecting the market price of stocks
(a)Murdock
Q145: The book value per share of common
Q146: The total amount of paid-in capital: $_
Q146: What's so "preferred" about preferred stocks?
Most preferred
Q147: The total amount of legal capital: $_
Q148: Shown below is the stockholders' equity section
Q149: Pike Corporation has total stockholders' equity of
Q151: The balance in Retained Earnings at the
Q153: The book value per share of common
Q154: Lewis Corporation issued 125,000 shares of $5
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