Which of the three would you classify as a growth stock


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 $ 61billion 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 $802 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?

Question - Stock X is classified as a____-stock

a. small-cap

b. mid-cap

c. large-cap

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Financial Management: Which of the three would you classify as a growth stock
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