Use the Following Information to Answer the Question(s)below

question 47

Multiple Choice

Use the following information to answer the question(s) below.
-Assuming that Novartis AG (NVS) has an EPS of $3.35,based upon the average P/E ratio for its competitors,Novartis' stock price is closest to:

• A)$13.00.
• B)$31.86.
• C)$43.47.
• D)$44.35.

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Definitions:

Break-Even Point

The financial point at which total revenues equal total costs, resulting in no net profit or loss.

Contribution Format

A way of presenting income statements where costs are divided into variable and fixed categories, highlighting the contribution margin.

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specified period of time.

Break-Even Point

The break-even point is the level of production or sales at which total revenues equal total costs, and there is no profit or loss.