high price to earnings ratio & npv ques14

high price to earnings ratio & npv ques14

Asked by 2 years ago
100 points

P/E Ratio Effect

(1) Why do you think some of the stocks had so high P/E ratios?

(2) Given the fact that firms with high P/E ratio firms have more growth opportunities than low P/E ratio firms, if other things remain the same, would you buy high P/E ratio firms or low P/E ratio firms, or are you indifferent?

High Price-to-Earnings Ratio Paper Student's Name Professor's Name Affiliation Date

High Price-to-Earnings Ratio Price-to-Earnings ratio (P/E ratio) is a tool used to assess stock performance. Its importance of is often overstated by most novice investor, who misinterpret results as a clear indication of company success (Staff, 2014). Price-to-Earnings ratio is calculated by diving share per with the earning per share (EPS). As such, a high P/E ratio created by a...

high price

1 Answer

Answered by 2 years ago
100 points

Oh Snap! This Answer is Locked

high price to earnings ratio    & npv ques14

Thumbnail of first page

Excerpt from file: RunningHeader:HIGHPRICETOEARNINGSRATIO 1 P/ERatioEffect (1)WhydoyouthinksomeofthestockshadsohighP/Eratios? (2)GiventhefactthatfirmswithhighP/Eratiofirmshavemoregrowthopportunities thanlowP/Eratiofirms,ifotherthingsremainthesame,wouldyoubuyhighP/Eratio firmsorlowP/Eratiofirms,orareyouindifferent?

Filename: high-price-to-earnings-ratio-npv-ques14-43.docx

Filesize: < 2 MB

Downloads: 1

Print Length: 5 Pages/Slides

Words: NA

Your Answer

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$

Use LaTeX to type formulas and markdown to format text. See example.

Sign up or Log in

  • Answer the question above my logging into the following networks
Sign in
Sign in
Sign in

Post as a guest

  • Your email will not be shared or posted anywhere on our site

Views: 2
Asked: 2 years ago