Longview Corporation Has a Stock Price of $50, Has Issued

question 301

Multiple Choice

Longview Corporation has a stock price of $50, has issued 2,000,000 shares of stock, has retained earnings of $4 million dollars, and a dividend yield of 4 percent. The price-earnings ratio for Longview stock is

• A)25, which is high compared to historical standards of the market.
• B)25, which is low compared to historical standards of the market.
• C)12.5, which is low compared to historical standards of the market.
• D)12.5, which is high compared to historical standards of the market.

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Definitions:

BCG Matrix

A strategic business tool that uses market growth and market share to categorize business units or products into four quadrants: Stars, Question Marks, Cash Cows, and Dogs.

Situation Analysis

An assessment of the current circumstances or factors affecting a specific organization, project, or business venture, to inform strategic planning.

Market Summary

A comprehensive overview of the market's performance, including trends, volume, price changes, and overall market health.

Marketing Plan

A comprehensive document that outlines a company's advertising and marketing efforts for the coming year.