If the Market Multiple Is 23

question 34

Multiple Choice

If the market multiple is 23.0 and the P/E ratio of a company is 27.4, then the share's relative P/E is

• A) 3.21.
• B) 4.40.
• C) 1.19.
• D) 0.84.

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Definitions:

Dimerize

To undergo a chemical reaction connecting two identical molecules to form a dimer.

Alkane

Saturated hydrocarbons consisting entirely of single-bonded carbon and hydrogen atoms, with a general formula of CnH2n+2.

Hammond Postulate

A principle stating that the transition state of a chemical reaction resembles the structure of the closest stable species: the reactants for endothermic steps and the products for exothermic steps.

Free Radical Chlorine

A highly reactive species of chlorine that carries an unpaired electron, often involved in radical reactions.