If a firm's price-earnings ratio is relatively low, then it might be an indication that

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Answer 1

Answer: That people expect the firm's earning to fall

Price-Earning ratio is calculated by dividing Stock Price with its earning per share.

When people expect a firm's earning to fall, it will significantly lower its stock price and there for make the price-earning ratio become relatively low

Related Questions

Johan is the manager of CycleUp and has agreed to build a new manufacturing plant in Argentina. He realizes this decision will cause him to shut down a small plant in Ohio, but he decides that since the new facility will cut his operating costs in half, that is worth more than closing a plant employing ten people. Which philosophical approach to ethics does this demonstrate
The actual number of patients at Providence Emergency Medical Clinic for the first six weeks of this year fallows Week Actual No. of Patients 45 2 48 57 39 46 55 Clinic administrator Dana Schniederjans wants you to forecast patient numbers at the clinic for week 7 by using this data. You decide to use a weighted moving average method to find this forecast. Your method uses four actual demand levels, with weights of 0 333 on the present period, 0.250 one period ago, 0 250 two periods ago, and 0 167 three periods ago a) What is the value of your forecast? The value of the forecast is patients (round your response to two decimal places).
Which of the following is TRUE? a. ISO 75000 is the supplier award given to the highest rated supplier in Japan. b. SRM software modules are very affordable (less than $50,000) and can be implemented with a week. c. Performance metrics and personal business relationships are both keys to building successful partnerships. d. The key to successful partnerships is developing performance measures with weights greater than 3.50.
As the ratio of the cost of overstocking to the cost of understocking gets larger:________ A) the optimal level of product availability decreases. B) the optimal level of product availability becomes irrelevant. C) the optimal level of product availability remains stable. D) the optimal level of product availability increases.
The expense of making an additional shirt is known as the _____ .

Samantha has been asked to join a task force that is charged with boosting organizational productivity. First, she was asked to jot down ideas on how to increase productivity, and after that, the group met to discuss everyone’s ideas and come up with solutions together based on those suggestions. Samantha’s taskforce best exemplifies which creative problem solving method?A) Traditional brainstormingB) Electronic brainstorming

C) Nominal group technique

D) Groupthink

Answers

Answer: Nominal group technique

Explanation:

Nominal group technique (NGT) can be defined as a structured method for a group brainstorming which encourages contributions from everyone and enhances quick agreement on the importance of issues, or solutions.

In nominal group technique, team members begin by writing down ideas, and then select the idea they feel is best. The nominal group technique identifies problems, and generates specific solutions that are needed for decision making.

Is it true or false customer expectations evolve over time?

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Answer:

true

Explanation:

What is a land as a factor of production

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Answer:

see below

Explanation:

Land as a factor of production will comprise the natural resources found beneath, on, and above the earth's surface. Land will therefore include the fertile land/soils used for agricultural productions, minerals, oil and gas, forests, water, and the space used to put up factories and businesses.

Land consists mostly of natural resources occurring on earth. The other factors of production consist of capital, labor, and entrepreneurship.

Whats the main advantage of establishing per item prices on an order and pricing form

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The main advantage of establishing per item prices on an order and pricing form is so that the customer can see and estimate well how they can budget on how much they would order or spend for the product they want to order.

Bart wants to know whether skateboarders have faster reactions than non-skateboarders. He recruits 25 skateboarding teenagers, and 25 non-skateboarding teenagers, and measures the reaction time of each group. What type of design is this?

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Answer:

Cross Sectional Quasi-Experiment

Explanation:

Based on the information provided within the question it can be said that the type of design that Bart is using in this scenario is a Cross Sectional Quasi-Experiment. This is a type of experiment in which two or more different types of groups are compared at the same time in order to analyze the results and come to a conclusion of the experimental variable that is being researched. Which in this case would be "who has better reaction time.".

The u.s. encourage domestic companies to export because

Answers

do you have any answers to choose from

it increases the value of the us dollar

Other Questions

To date, Jay Ward has cumulative earnings of $118,000. This week he is paid $3,000. The total amount of Social Security tax for this week is (assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare):

According to The Wedding Report, in 2010, the average wedding cost a little more than _____. twenty-four thousand dollars five thousand dollars eleven thousand dollars thirty thousand dollars

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected as the base year. In 2002, the basket’s cost was $600; in 2004, the basket’s cost was $650; and in 2006, the basket’s cost was $700. The value of the CPI in 2004 was (rounded to one decimal place)

If management identifies even one material weakness in internal control, then management will conclude that the organization’s internal control over financial reporting is not effective.1. True2. False