If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion?
A: The stock has a low level of risk.
B: The stock offers a high dividend payout ratio.
C: The market is undervaluing the stock.
D: The market is overvaluing the stock.
A: The stock has a low level of risk.
B: The stock offers a high dividend payout ratio.
C: The market is undervaluing the stock.
D: The market is overvaluing the stock.
举一反三
- Assuming all other factors remain unchanged, which of the following would most likely lead to a decrease in the market P/E ratio（） A: A rise in the stock risk premium. B: A decline in the risk-free rate. C: An increase in the dividend payout ratio.
- Which of the following statements is most accurate A continuous market most likely exists for a stock when:（） A: Significant new information about the company is released to market participants. B: An overnight buildup of buy and sell orders for the stock occurs. C: Numerous dealers are willing to make a market in the stock.
- The market-to-book ratio is measured as: A: total equity divided by total assets. B: net income times market price per share of stock. C: net income divided by market price per share of stock. D: market price per share of stock divided by earnings per share. E: market value of equity per share divided by book value of equity per share.
- Generally, the lower the turnover ratio,( ) A: the less liquid the secondary stock market, indicating difficulty in trading. B: the more liquid the secondary stock market, indicating difficulty in trading. C: the more liquid the primary stock market, indicating difficulty in trading. D: the more efficient the stock market is.
- 【单选题】() refers to the total value at market prices of the shares in issue for a company (or a stock market , or a sector of the stock market) A: Market capitalization B: Capital good C: Market capital D: Market liquidation