Company Price per Share Earnings per Share Salem Salvage $26.49 $2.19 Portsmouth Metal Recycling $14.51 $3.94 Hampshire Reclamation $161.25 $16.02 Newport Recycling $123.75 $14.25 Given the current price and earnings per share given, evaluate which of the companies will be the most beneficial to short. Select the best answer from the choices provided. Salem Salvage Portsmouth Metal Recycling Hampshire Reclamation Newport Recycling
@sylbot
Hmm... idk this one. Are the earnings usually paid as dividends? Then you'd have to pay to short it because you are effectively "borrowing" someone elses share so you'd need to pay the dividends they would have gotten.
ill check in to it
I'd say take the ratios between all of them and find the smallest one, because thats the lowest payment for shorting.
alright
Doing that calculation I got Salem salvage
@sylbot Alright ill pick that one.. check the other one
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