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An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $ 9 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 $ 64 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 37 . Stock Z, a housing industry company, has a market capitalization of $ 799 million and a P/E of 18

a. Classify these stocks according to their market capitalizations. -Is Stock X is a small, mid cap or large cap stock... Is Stock Y is a small, mid cap or large cap stock...Is Stcok Z is a small cap, mid cap or large cap stock

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?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92063524

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