Someone seeking a combination of safety and earnings

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Reference no: EM131360892

An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $9 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 $65 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 40. Stock Z, a housing industry company, has a market capitalization of $809 million and a P/E of 17 . a. Classify these stocks according to their market capitalizations. 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?

Reference no: EM131360892

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