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 11. Stock Y has a market capitalization of $ 64 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 $ 799 million and a P/E of 18
a. Classify these stocks according to their market capitalizations. -Is Stock X is a small, mid cap or large cap stock... Is Stock Y is a small, mid cap or large cap stock...Is Stcok Z is a small cap, mid cap or large cap stock
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?