Worcester Corporation Has a P/E Ratio of 15

question 79

Multiple Choice

Worcester Corporation has a P/E ratio of 15. Natick Corporation is in the same industry as Worcester, but has a P/E ratio of 20. Possible interpretations of this discrepancy include

• A) Worcester Corporation is overpriced.
• B) Natick Corporation has higher earnings per share.
• C) Investors expect Natick to grow faster than Worcester.
• D) Natick's stock price is higher than Worcester's.

Identify the implications of management decisions on labour relations and employee well-being.

Understand the impact of unions on labour legislation, HR policies, and practices.

Understand the primary motivations and processes involved in unionization.

Recognize the roles of employees, managers, and unions in the organization and unionization process.

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Definitions:

Negatively Skewed

A distribution with a tail that extends to the left, indicating that the majority of the data points are located towards the right of the mode.

Distribution

In statistics, the way in which data or values are spread or distributed across possible values or intervals.

Normal Distribution

A symmetric, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the data points are from the mean.