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:

Psychological Contract

A perceived set of unwritten mutual expectations between an employer and an employee.

Organizational Socialization

The process by which new employees learn the norms, values, and required behaviors of an organization.

U.S. Workforce

The labor pool in the United States, encompassing all employed individuals across various sectors and industries.

Women or People of Color

Refers to individuals identified as female or those belonging to racial or ethnic groups that have historically been marginalized.