An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in? earnings, and has a? P/E ratio of 12. Stock Y has a market capitalization of ?$62 billion but does not currently pay a dividend. Stock Y has a? P/E ratio of 37 Stock? Z, a housing industry? company, has a market capitalization of ?$804 million and a? P/E of 18.
a. Classify these stocks according to their market capitalization.
b. Which of the three would you classify as a growth? stock? Why?
c. Which stock would be most appropriate for an aggressive? investor?
d. Which stock would be most appropriate for someone seeking a combination of safety and? earnings?
Question - Stock X is classified as a:
a. small-cap
b. mid-cap
c. large-cap