You are told that a company retains 80 percent of its earnings and its earnings are growing at a rate of about 8 percent a year versus an average growth rate of 6 percent for all firms. Discuss whether you would consider this a growth company.
Answer to relevant QuestionsDiscuss the reasoning behind the contention that in a completely competitive economy, there would never be a true growth company.On your visit to Alessandra Chemical Corp. (ACC), you learned that the board of directors has periodically debated the company's dividend-payout policy.a. Briefly discuss two arguments for and two arguments against a high ...The value of an asset is the present value of the expected returns from the asset during the holding period. An investment will provide a stream of returns during this period, and it is necessary to discount this stream of ...Discuss some disadvantages of technical analysis.What is the purpose of computing a moving-average line for a stock? Describe a bullish pattern using a 50-day moving-average line and the stock volume of trading. Discuss why this pattern is considered bullish.
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