Determining the Crossover Point on the Life Cycle Curve Is

question 82

Multiple Choice

Determining the crossover point on the life cycle curve is important for which reason?

• A)Stock prices usually climb as earnings become more stable
• B)Price-earnings ratios collapse because of slower growth expectations
• C)Increasing cash dividends will lead to higher share prices
• D)Investors who choose to invest in growth companies will want to wait until the crossover point has been reached
• E)None of the above