Alpha Corporation has a price of $5 a share,outstanding shares of 2.5 million,retained earnings of $1 million dollars,and a dividend yield of 2 percent.It has a price-earnings ratio which is
A)high,perhaps indicating that people expect future earnings to rise.
B)high,perhaps indicating that people expect future earnings to fall.
C)low,perhaps indicating that people expect future earnings to rise.
D)low,perhaps indicating that people expect future earnings to fall.

Question

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The Answer of Alpha Corporation has a price of $5 a share,outstanding shares of 2.5 million,retained earnings of $1 million dollars,and a dividend yield of 2 percent.It has a price-earnings ratio which is
A)high,perhaps indicating that people expect future earnings to rise.
B)high,perhaps indicating that people expect future earnings to fall.
C)low,perhaps indicating that people expect future earnings to rise.
D)low,perhaps indicating that people expect future earnings to fall.

Alpha Corporation Has a Price of $5 a Share,outstanding Shares