The table shows one quarter's stock market data for eight energy

Question

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).

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

(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.

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Apt0810 · Answer

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

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rmahe11 · Answer

150 percent higher is wrong calculation if its 9.77 and If P/E for alternative has to be minimum 100 percent higher than it should be min 19.54 so your calculations is not correct for first question

samarpan.g28 · Answer

Q1. The median P/E ratio for the alternative companies is 16.70, and that for the Conventional companies is 9.77. (16.70-9.77)/9.77~70% higher. False. If it were 150% higher then the median P/E ratio for the Conventional companies should be 9.77*250/100~24. False.

Q2. The median value of the market capitalization is ~63. If we sort the column Market Cap (Millions), we can see the differences from the median for the first four values are much higher(approx 197%, 41%, 15% and 2%) than the differences for the last four (2%, 7%, 17%, 26%). True.

Q3. The average dividend yield at first is ~1.72. If we increase the lowest dividend yield i.e. 0.65 by 10% then it becomes 0.715 and if we decrease the highest dividend yield i.e. 2.93 by 10% then it becomes 2.637. The new average is ~1.69 so not the same. False.

SR4896 · Answer

150% higher is 250% of the base value

rahumangal · Answer

for q-1 it says atleast 150%Cb higher ,so and the value of 16.7 is almost 170 % higher ,so i think answer should be true

Bunuel · Answer

The median P/E for alternative companies is 16.70, and for conventional companies, it’s 9.77.

16.70 / 9.77 ≈ 1.7, meaning 16.70 is only about 70% higher than 9.77. For the alternative companies' median to be 150% higher, it should have been at least 9.77 * 2.5 = 24.42 (more than twice that of 9.77).

So, the statement is  False .

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.

The table shows one quarter's stock market data for eight energy

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The table shows one quarter's stock market data for eight energy

Prep Toolkit

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