An Analyst Has Determined That the Intrinsic Value of Dell

question 50

Multiple Choice

An analyst has determined that the intrinsic value of Dell stock is $34 per share using the capitalized earnings model.If the typical P/E ratio in the computer industry is 27, then it would be reasonable to assume the expected EPS of Dell in the coming year will be

• A)$3.63.
• B)$4.44.
• C)$14.40.
• D)$1.26. $34(1/27) = $1.26.

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The manner or approach by which individuals communicate and engage with one another.

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The information and understanding that one already possesses before encountering new information or experiences.

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The component of memory that is responsible for holding information taken in through the senses for a very short period of time.

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Specialized organs or structures that detect external or internal stimuli, enabling perception of sight, sound, smell, taste, and touch.