An Analyst Has Determined That the Intrinsic Value of IBM

question 57

Multiple Choice

An analyst has determined that the intrinsic value of IBM stock is $80 per share using the capitalized earnings model.If the typical P/E ratio in the computer industry is 22, then it would be reasonable to assume the expected EPS of IBM in the coming year is

• A)$3.64.
• B)$4.44.
• C)$14.40.
• D)$22.50. $80(1/22) = $3.64.

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Definitions:

Customer Demand

The desire and willingness of consumers to buy products or services, influenced by factors like price, quality, and trends.

EEG Scans

Recordings of the electrical activity of the brain using electrodes placed on the scalp, used in medical and research settings to examine brain function.

Snowball Samples

A non-probability sampling technique where existing study subjects recruit future subjects from among their acquaintances, leading to exponential growth in sample size.

Eye-Tracking Output

Eye-tracking output refers to the data collected from tracking where and how long a person's gaze focuses on different areas of a visual interface, useful for understanding user engagement and behavior.