An Analyst Has Determined That the Intrinsic Value of Dell

question 54

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.

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Definitions:

Air Pollution

The presence of harmful or excessive quantities of substances including gases, particles, and biological molecules in Earth's atmosphere which can cause disease, death to humans, damage to other living organisms such as food crops, or the natural or built environment.

Chemical Reactions

Processes in which substances interact to form new products, involving changes in molecular structure and energy.

Exhaust Emissions

The gases and particles released into the atmosphere from an engine or other machinery combustion process.

Repair Order (RO)

A document issued by a service provider listing the work to be done on a vehicle, including repairs, maintenance, and the costs involved.