Question

IBN has a trailing P/E of 27 52, while the median peer group P/E is 33 25 Assuming that there are no differences in the funda

0 0
Add a comment Improve this question Transcribed image text
Answer #1

PE ratio can be determined by Market price/Earnings per share. Companies with high PE ratio can also be considered as a overvalued. since the peer firm can be considered as a over valued. companies with high PE ratio means the stocks are growth stocks.This indicates positive future performance and the investors will expect more future earnings.

so the correct option is C.

Add a comment
Know the answer?
Add Answer to:
IBN has a trailing P/E of 27 52, while the median peer group P/E is 33...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • . Reliable Electric Corp. in Austria has a trailing P/E of 14. Analysts predict that Rliable's...

    . Reliable Electric Corp. in Austria has a trailing P/E of 14. Analysts predict that Rliable's dividends will continue to grow at its recent rate of 4.5% per year into the indefinite future. Given a current dividend and EPS of A$0.7 per share and A$2.00 per share, respectively, and a required rate of return on equity of 8%. (12 points) a) What is the intrinsic value of Reliable using GGM? (5 points) b) Based on a trailing P/E of 14,...

  • Company KSU Inc., has a leading EPS of $3, and a book value of equity of...

    Company KSU Inc., has a leading EPS of $3, and a book value of equity of $34,943 million. The median peer group P/E is 18.75. Assuming there are no differences in the fundamentals among the peer group and the company 4M, find an estimate of the company stock price using the price multiples. Question 22 options: 1) $44.05 2) $56.25 3) $66.35 4) $71.10

  • Jennifer is interested in the mutual fund RBC U.S. Index Fund – Series A. She has...

    Jennifer is interested in the mutual fund RBC U.S. Index Fund – Series A. She has a few questions for you before she buys this investment. a) Does the reported fund’s return include the Management Expense Ratio (MER) ? Yes or No b) What type of fee is charged: No-load, Front-end load or a Back-end load? c) Is the status of this mutual fund classified as a closed-end or open-end mutual fund?   d) Based on your response in c), explain...

  • its fundamentals to economics ensures that resources are allocated to their highest-valued uses. a. Monopoly b....

    its fundamentals to economics ensures that resources are allocated to their highest-valued uses. a. Monopoly b. Government C. The consumer d. Competition e. Arbitrage Styles 3 As the wago rato increases, the quantity supplied of labor in a market will a. increase. b. decrease c. first increase and then decrease. d. first decrease and then increase. e. remain constant. 4 As the wage rate increases, the quantity demanded of labor in a market will a. increase. b. decrease. c. first...

  • does anyone know what High and low group means in this context? i really do not...

    does anyone know what High and low group means in this context? i really do not understand this article so anyone that does please explain it to me and what the hugh and low group mean in the figures. Received: 21 November 2018 Revised: 27 February 2019 Accepted: 6 March 2019 DOE: 10.1002p28546 ORIGINAL RESEARCnes-highdearee of intra modole connecHvity WILEYa Phypliology ARTICLE Four novel biomarkers for bladder cancer identified by weighted gene coexpression network analysis Zi-Xin Guo | Xiao-Ping Liu...

  • Question 1 An array is NOT: A - Made up of different data types. B - Subscripted by integers. C -...

    Question 1 An array is NOT: A - Made up of different data types. B - Subscripted by integers. C - A consecutive group of memory chunks. D - None of the choices. Question 2 How many times is the body of the loop executed? int i=1; while(true) { cout << i; if(++i==5) break; } A - Forever B - 4 C - 5 D - 6 E - 0 Question 3 What is wrong with the following piece of...

  • 10. The Beck & Watson article is a Group of answer choices quantitative study qualitative study...

    10. The Beck & Watson article is a Group of answer choices quantitative study qualitative study 11. Beck & Watson examined participants' experiences and perceptions using what type of research design? Group of answer choices particpant obersvation phenomenology 12. Select the participants in the Beck & Watson study Group of answer choices Caucasian women with 2-4 children Caucasian pregnant women 13. In the Beck & Watson study, data was collected via a(n) Group of answer choices internet study focus group...

  • 14. Select the number of participants in the Beck & Watson study Group of answer choices...

    14. Select the number of participants in the Beck & Watson study Group of answer choices 8 13 22 35 15. Beck & Watson determined their final sample size via Group of answer choices coding saturation triangulation ethnography 16.Through their study, Beck & Watson determined Group of answer choices after a traumatic birth, subsequent births have no troubling effects after a traumatic birth, subsequent births brought fear, terror, anxiety, and dread Subsequent Childbirth After a Previous Traumatic Birth Beck, Cheryl...

  • 1) Discuss the company's top risks? 2) Discuss whether the company treats risk reactively or proactively?...

    1) Discuss the company's top risks? 2) Discuss whether the company treats risk reactively or proactively? 3) Do you observe a lack of understanding of potential exposures? 4) Does the company focus on internal risks or external risks? 5) Do you think the company is well prepared to respond to potential risks? Orange County he t die Following the debocie Orange County o dmorych of control procedures and financial gove nonce and d e setof o n policies December 1994...

  • Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are...

    Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are not used.) a. invented capitalism b. invented socialism c. founder of modern macroeconomics d. founder of modern market economics e. predicted the end of capitalism 5. If a firm has trouble selling its good, it can a. lower price. b. increase demand. c. decrease supply. d. both a) and b) are correct. 6. People often pay too much for goods because they are not...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT