Which of the three would you classify as a growth stock

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Question - An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $6 billion, pays a relatively high dividend with little increase in? earnings, and has a P/E ratio of 10. Stock Y has a market capitalization of $64 billion but does not currently pay a dividend. Stock Y has a P/E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $810 million and a P/E of 20.

a. Classify these stocks according to their market capitalizations. (small cap, mid cap, large cap)

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: EM132836914

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