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An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $ 6 billion, pays a relatively high
An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $ billion, pays a relatively high dividend with little increase in earnings, and has a PE ratio of Stock why has a market capitalization of $ billion but does not currently pay a dividend. Stock Y has a PE ratio of Stock Z a housing industry company, has a market capitalization a $ million and a PE of Classify the stocks according to their market capitalization. Which of the three would you classify as a growth stock? Why? Which stock would be most appropriate for an aggressive investor? Which stock would be most appropriate for someone seeking a combination of safety and earnings?
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