6. Thomas Publishing has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 1 percent. It has a price to 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 rise.
7.You’ve been promised a payment of $400 in the future. In which case is the present value of this payment highest?
A.you wait 4 years and the interest rate is 4%
B.you wait 4 years and the interest rate is 5%
C.you wait 5 years and the interest rate is 4%
D.you wait 5 years and the interest rate is 5%
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