Longview Corporation Has a Stock Price of $60,has Issued 1,000,000

question 132

Multiple Choice

Longview Corporation has a stock price of $60,has issued 1,000,000 shares of stock,has retained earnings of $3 million dollars,and a dividend yield of 5 percent.The price-earnings ratio for Longview stock is

• A)20,which is high compared to historical standards of the market.
• B)20,which is low compared to historical standards of the market.
• C)10,which is low compared to historical standards of the market.
• D)10,which is high compared to historical standards of the market.

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Definitions:

Displacement Theory

A theory suggesting that individuals divert negative emotions or impulses towards something less threatening rather than the actual source of those emotions.

Terror Management Theory

A psychological framework suggesting that humans' awareness of their own mortality drives behaviors aimed at bolstering self-esteem and cultural worldviews.

Instrumental Aggression

Aggressive behavior aimed at achieving a specific goal or outcome, rather than stemming from feelings of anger or hostility.

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behaviors are ambiguous or benign.