Question

The P/E ratio for a certain stock was high. This means _____.

1. the stock price is more than $100
2. the stock price is about to drop
3. the stock is expensive to invest in at this time
4. when you divide the closing price by the dividend, you get a number higher than 50

Answer 1

4.when you divide the closing price by the dividend you get a number higher thsn 50