An investor is considering purchasing one of the following three stocks Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P E ratio of 11 Stock Y has a market capitalization of $62 billion but does not currently pay a divi...

a Stock X is a midcap stock because its market capitalization is 7 billion Stock Y is ...

An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization

Question:

An investor is considering purchasing one of the following three Stock X has a market capitalization of $7 billion, pays a relatively high with little increase in earnings, and has a P/E ratio of 11. Stock Y has a market capitalization of $62 billion but does not currently pay a Stock Y has a P/E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P/E of 18.
a. Classify these according to their market capitalizations.
b. Which of the three would you classify as a growth stock? Why?
c. Which stock would be most appropriate for an aggressive investor?
d. Which stock would be most appropriate for someone seeking a combination of safety and earnings? Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...