Question

In March 2017, Amazon and Clorox reported nearly identical earnings per share, but the stock price of Amazon was more than six times higher than the Clorox stock price. The most likely explanation for that difference is that ________.
a. Clorox is bad for the environment
b. Amazon is a riskier company
c. investors see better long-term prospects for Amazon
d. Amazon has more shares of stock outstanding

Answer 1

Answer:

c. investors see better long-term prospects for Amazon

Explanation:

As we know that Amazon has the more customer base in the market due to which the shareholder predicted the expected profit in upcoming years. The company could run in long run. Even the ompany suffered huge losses due to discount provided but the investors are ready to invest in this company as they seen there is a better and long term prospects

Therefore according to the given situation, the option c is correct