Question

Low P/B, P/E, and high dividend yield are often used as indicators for "value" stocks. Which of the following attributes enhance these value indicators, but are not consistent with the company's stock being a true Investment value? a) Earnings managment boosts earnings following previous week reported earnings. b) Stock price falls in line with broad market weakness associated with the business cycle c) Large dividends in firm with sizible inside ownership d) Poor growth prospects e) Inflation boosts earnings

Answer 1

a) Earnings management boosts earnings following previous week reported earnings.

c) Large dividends in firm with sizable inside ownership

d) Poor growth prospects