Business High School

If people expect future earnings of Galt Corporation to be high relative to current earnings, then a. the P/E ratio of its stock will be high. A P/E ratio of 8 is relatively low. b. the P/E ratio of its stock will be high. A P/E ratio of 8 is relatively high. c. the P/E ratio of its stock will be low. A P/E ratio of 8 is relatively low. d. the P/E ratio of its stock will be low. A P/E ratio of 8 is relatively high.

Answers

Answer 1

When earnings are expected to be high relative to current earnings, then a. the P/E ratio of its stock will be high. A P/E ratio of 8 is relatively low.

What happens when future earnings are expected to be high?

If earnings are expected to be high as in the case of the Galt Corporation, then the price of the stock will rise.

This will then lead to a high P/E ratio because the price will rise but the earnings will remain the same.

Find out more on the P/E ratio at https://brainly.com/question/14644755.

#SPJ1

Related Questions

A mutual fund is quoted at $16.56 NAV and $18.00 POP. The sales charge is A) 8.50% B) 7.75% C) 7.50% D) 8%

Answers

Based on the Mutual fund's NAV and the POP, the sales charge can be found to be D. 8%.

How is a Mutual fund's sales charge calculated?

You can find the sales charge through the formula:

= (POP - NAV) / POP x 100%

Solving gives:

= (18 - 16.56) / 18 x 100%

= 1.44 / 18 x 100%

= 8%

Find out more on Mutual fund charges at https://brainly.com/question/22525531.

#SPJ1

Have a clearance of how many inches in the left side of a vehicle

Answers

5-9 inches is optimal for most cars and trucks
Other Questions
30) A food web models how the matter eaten by organisms moves through an ecosystem. The arrows in a food web represent how matter moves between organisms in an ecosystemIn this food web, which organisms contain matter that moves to the beaver?A) Silver mapleB) Pine voleC) Parasol fungusD) Swallowtail caterpillar I NEED A.S.A.P PLEASE I WILL GIVE BRAINLIESTSimplify: 5.9 (9 - 5) + 4^3 + 3.86 A. 63.06 B. 72.83 C. 91.46 D. 98.32 Solve the system of equations using substitution.y=x+2,5x-4y=-3 If one student is chosen at random, Find the probability that the student was NOT a female that got a "C"--------- A // B // C // TotalMale: 10 // 8 // 15 // 33Female: 7 // 9 // 17 // 33Total: 17 // 17 // 32 //66 Complete the chart about federalists and antifederalists. FederalistsAntifederalistsOpinion about Constitution Where Did Supporters Live Bill of Rights Founding Fathers Economic Ideas View on States Powers Olga has written four lead sentences for her story about Anastasias experiences in the circus. Which of her leads is a statement hinting at the story?( ) Anastasia and Frieda were breathless with excitement as they waited to burst upon the stage for their first performance.( ) A knot of unicyclists flashed into the spotlight and spun around the ring, magically moving as a single unit.( ) Youre right, Friedait is thrilling when we first ride into the ring, admitted Anastasia.( ) Each unicyclist rode into the spotlight wearing a florescent top hat and sequined leotard that dazzled the audience. What are the main Spanish punctuation rules? Capital of Pakistan, India, Afghanistan and Iran How did the city-state of Athens make laws? Who taught the Romans the most about art, literature, and math? Question 4 of 10How would increasing the amount of water in blood affect blood pressure?OA. Blood pressure would decreaseB. Blood pressure would stay the sameO C. Water is not related to blood pressureOD. Blood pressure would increaseSURMIT What is the (LCM) of 5/6 and2/5 The diagram shows a rectangle. The area of the rectangle is 310 m. Work out the value of w when 5x-9 is the length and 3x+7 is the another length if water completely boils in 7 minutes, how long does it take to evaporate What is the relationship between the values m and n plotted on the numberline below?mnHA. m = nOB. m> nOC. mh Explain why it makes sense that the levels of estrogen and progesterone are low in blood of a female during menstruationI'll give brainly to whoever response is good !please help me :C Please help I am so confusedThe phone company Ringular has a monthly cellular plan where a customer pays a flat monthly fee and then a certain amount of money per minute used on the phone. If a customer uses 480 minutes, the monthly cost will be $277. If the customer uses 990 minutes, the monthly cost will be $532.A) Find an equation in the form y=mx+b, where x is the number of monthly minutes used and y is the total monthly cost of the Ringular plan.Answer: y=B) Use your equation to find the total monthly cost if 881 minutes are used.Answer: If 881 minutes are used, the total cost will be 13. Which of the following religions initially adopted an aniconic view of art but have since moved toward including images of their deities in art? (Choose all that apply.)A. Buddhism B. Judaism C. Christianity D. Hinduism How does gravity relate to potential energy? Which is the correct description of a revolution and one of its outcomes?.