Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Updated on: 07 May 2024, 08:26
Originally posted by Sajjad1994 on 16 Jul 2020, 07:00.
Last edited by Bunuel on 07 May 2024, 08:26, edited 4 times in total.
Last edited by Bunuel on 07 May 2024, 08:26, edited 4 times in total.
Moved to new forum
Kudos
Bookmarks
The median P/E ratio for the alternative companies is at least 150% higher than the median P/E ratio for the conventional companies.: False
For market capitalization, adjusting each of the values to the median would require a greater percent change for the lowest-ranked company than for the highest-ranked company.: True
The average dividend yield would remain the same if the lowest reported dividend yield were 10% higher and the highest reported dividend yield were 10% lower.: False
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
43% (03:31) correct
57%
(03:27)
wrong
based on 217
sessions
History
Date
Time
Result
Not Attempted Yet
The table shows one quarter's stock market data for eight energy companies, five that specialize in alternative energy sources and three that utilize conventional energy sources. The columns represent, respectively: the name of the company, the company's market capitalization (Market Cap), the Price/Earnings ratio (P/E), the quarterly dividend yield (Div. Yield) and the quarterly price change as represented by a percentage (Price Change).
(Sort ↕ the table by clicking on the headers)
For each statement, indicate whether the statement is true or false, based on the information in the table.
2weds.jpg [ 118.6 KiB | Viewed 4531 times ]
| Name | Market Cap (Millions) | P/E | Div.Yield (%) | Price Change (%) | Type |
|---|---|---|---|---|---|
| Dino Power | 76.36 | 5.45 | 0.65 | 6.32 | Conventional |
| Eco Energy | 61.55 | 16.12 | 1.46 | -0.49 | Alternative |
| Hydro Solutions | 84.66 | 36.68 | 0.73 | 5.35 | Alternative |
| Nature’s Way | 54.68 | 11.31 | 2.19 | -4.62 | Alternative |
| Omni Coal | 64.38 | 22.13 | 1.95 | 5.59 | Conventional |
| Solely Solar | 21.22 | 34.76 | 2.93 | 3.89 | Alternative |
| True Blue Flame | 44.40 | 9.77 | 1.30 | -10.45 | Conventional |
| Wind Logic | 68.28 | 16.70 | 2.60 | 8.75 | Alternative |
For each statement, indicate whether the statement is true or false, based on the information in the table.
Attachment:
2weds.jpg [ 118.6 KiB | Viewed 4531 times ]
| True | False | |
| The median P/E ratio for the alternative companies is at least 150% higher than the median P/E ratio for the conventional companies. | ||
| For market capitalization, adjusting each of the values to the median would require a greater percent change for the lowest-ranked company than for the highest-ranked company. | ||
| The average dividend yield would remain the same if the lowest reported dividend yield were 10% higher and the highest reported dividend yield were 10% lower. |
ShowHide Answer
Official Answer
The median P/E ratio for the alternative companies is at least 150% higher than the median P/E ratio for the conventional companies.: False
For market capitalization, adjusting each of the values to the median would require a greater percent change for the lowest-ranked company than for the highest-ranked company.: True
The average dividend yield would remain the same if the lowest reported dividend yield were 10% higher and the highest reported dividend yield were 10% lower.: False
16 Jul 2020, 10:00
Kudos
Bookmarks
1)Yes,P/E ratio for alternative energy sources=
11.31,16.12,16.7,34.76,36.68
So median is 16.7
While P/E ratio for conventional sources=5.44,9.77,22.13,so median is 9.77 now 150% of median of Conventional = 14.655 ,so it is higher
2)Yes, According to market cap the median is = (61.55+64.38)/2=62.965
So % change for lowest rank=(62.965-21.22)/21.22 =196%
While % change for highest rank = 25.62% decrement,so yes statement is true
3)No,Let the Sum of all yields = S
Now increasing the lowest by 10%= 0.65+0.065=.715
Decreasing the highest by 10% =2.93-.293=2.637
So previous sum of highest and lowest = 3.58
And new sum= 3.352,so the overall avg will decrease
Posted from my mobile device
11.31,16.12,16.7,34.76,36.68
So median is 16.7
While P/E ratio for conventional sources=5.44,9.77,22.13,so median is 9.77 now 150% of median of Conventional = 14.655 ,so it is higher
2)Yes, According to market cap the median is = (61.55+64.38)/2=62.965
So % change for lowest rank=(62.965-21.22)/21.22 =196%
While % change for highest rank = 25.62% decrement,so yes statement is true
3)No,Let the Sum of all yields = S
Now increasing the lowest by 10%= 0.65+0.065=.715
Decreasing the highest by 10% =2.93-.293=2.637
So previous sum of highest and lowest = 3.58
And new sum= 3.352,so the overall avg will decrease
Posted from my mobile device
