An investor prefers value stocks togrowth stocks should purchase the stock of companies with above-average:
A.market-to-book ratios.
B.price-to-earnings ratios.
C.dividend yields.
Correct Answer:C
Higher thanaverage dividend yield is a characteristic of a value stock, along with lowprice-to-earnings and low market-to-book ratios. Growth stocks arecharacterized by low dividend yields and high price-to-earnings and highmarket-to-book ratios.