Longview Corporation Has a Stock Price of $60,has Issued 1,000,000

question 132

Multiple Choice

Longview Corporation has a stock price of $60,has issued 1,000,000 shares of stock,has retained earnings of $3 million dollars,and a dividend yield of 5 percent.The price-earnings ratio for Longview stock is

• A)20,which is high compared to historical standards of the market.
• B)20,which is low compared to historical standards of the market.
• C)10,which is low compared to historical standards of the market.
• D)10,which is high compared to historical standards of the market.

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Definitions:

Formal Chain

A structured sequence of command or a hierarchy within an organization, where communication and decisions flow through a pre-defined path.

Efficiency

The ability to accomplish a task or objective with the minimal expenditure of time and resources.

Competing Values Framework

A model that categorizes organizational cultures into four distinct types based on two dimensions: focus (internal vs. external) and structure (flexibility vs. stability).

Market Culture

A type of organizational culture that is characterized by a strong emphasis on competitiveness, results, and achieving measurable goals.