Which of the Following Is Most Likely to Be a Considered

question 171

Multiple Choice

Which of the following is most likely to be a considered a growth stock?

• A) A company with a P/E ratio between 0 and 20.
• B) A company with a P/E ratio greater than 20.
• C) A company with a long history of stable dividend payments.
• D) A company with relatively high earnings per share.

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Definitions:

Market Rate

The current price or interest rate at which an asset or service can be bought or sold in a particular market.

Secured Bond

Specific assets are pledged as a guarantee of repayment at maturity.

Guarantee Repayment

The obligation of the guarantor to pay back the debt in case the debtor fails to make payments.

Specific Assets

Assets that are designated for a specific use or held to meet particular obligations, not readily used for other purposes.