What does it mean when a company has a very high P/E ratio? Give examples of industries
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
A high PE ratio implies that investors believe that the firm has good prospects for earnings grow...View the full answer
Answered By
Emel Khan
I have the ability to effectively communicate and demonstrate concepts to students. Through my practical application of the subject required, I am able to provide real-world examples and clarify complex ideas. This helps students to better understand and retain the information, leading to improved performance and confidence in their abilities. Additionally, my hands-on approach allows for interactive lessons and personalized instruction, catering to the individual needs and learning styles of each student.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
Students also viewed these Accounting questions
-
What does it mean when a company tries to mitigate their transportation risk? How can they accomplish this?
-
What does it mean when a firm window dresses its financial statements?
-
What does it mean when a capital asset is impaired? Provide two examples of how a capital asset could become impaired.
-
According to a study by the American Pet Food Dealers Association, 63% of U.S. house-holds own pets. A report is being prepared for an editorial in the San Francisco Chronicle. As a part of the...
-
Planning orders using a lot-for-lot (L4L) technique is commonly done because it is simple and intuitive. It also helps minimize holding costs because you are only ordering what is needed when it is...
-
During the Computer Daze special promotion, a customer purchasing a computer and printer is given a choice of 3 free software packages. There are 10 different software packages from which to select....
-
What factors influence employees willingness to support efforts to increase productivity?
-
Based on the data presented in Exercise 25-15, assume that Sirrus Phone Company uses the variable cost concept of applying the cost-plus approach to product pricing. a. Determine the variable costs...
-
Carmens Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 9,400 April $ 9,400 February 3,400 May 10,400 March 4,400 June 5,400 Short-term...
-
The following transactions were completed by Almeda Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $75,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market...
-
Under what conditions does it make sense to use the constant-growth dividend model to value a stock?
-
Preferred stock is considered to be nonparticipating because: a. Investors do not participate in the election of the firms directors. b. Investors do not participate in the determination of the...
-
Financial information related to Infra-Systems Company for the month ended November 30, 2014, is as follows: Net income for November ...........$275,000 Dividends paid during November ........ 40,000...
-
For some financial statement assertions, the knowledge of control procedures gained from studying the control environment and accounting system may be sufficient to assess control risk and design...
-
Which of the following sets of statements are not consistent with each other? a. Control risk assessment is at the maximum. There is a very high level of substantive tests. b. Control risk assessment...
-
In practice, separate audit strategies might not be developed for all assertions for every account balance and class of transactions because a. The dollar amount of some accounts is significant...
-
Give two reasons why the auditor might use the lower control risk approach.
-
All of the following relate to assertions except a. Operating expenses of an entity have occurred. b. All inventory items that should be presented in the financial statements are so included. c....
-
Refer to Example 13 concerning an array of sites that smell toxic chemicals. When exposed to the common manufacturing chemical Arsine, a product of arsenic and acid, the change in the red component...
-
What is the mode?
-
Why is the Black-Scholes model inappropriate for pricing options on bonds?
-
Suppose the company in the previous problem uses an 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. Calculate the MIRR of the projects using all three methods...
-
McKeekin Corp. has a project with the following cash flows: Year Cash Flow 0 ..................... $20,000 1 ...................... -26,000 2 ....................... 13,000 What is the IRR of the...
-
A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the...
-
The following inventory transactions took place in the month of November. Determine endning inventory and cost of goods sold for the month using perpetual Weighted Average. ( 1 8 points ) Ending...
-
Park Inc. and Woods Inc. both recently entered into long - term leases for manufacturing equipment. Currently. Park has a total lease liability of $ 6 8 , 0 0 0 and expects to pay about $ 1 2 , 0 0 0...
-
Campbell, a single taxpayer, earns $ 4 2 0 , 0 0 0 in taxable income and $ 3 , 0 0 0 in interest from an investment in State of New York bonds. ( Use the U . S . tax rate schedule. ) Required: a ....
Study smarter with the SolutionInn App