Al's Has a Price-Earnings Ratio of 18

question 17

Multiple Choice

Al's has a price-earnings ratio of 18.5.Ben's also has a price-earnings ratio of 18.5.Which one of the following statements must be true if Al's has a higher PEG ratio than Ben's?

• A)Al's has more net income than Ben's.
• B)Ben's is increasing its earnings at a faster rate than the Al's.
• C)Al's has a higher market value per share than does Ben's.
• D)Ben's has a lower market-to-book ratio than Al's.
• E)Al's has a higher net income than Ben's.

Calculate the amount of money needed today to reach a future financial goal given a specific interest rate.

Understand the impact of time on the growth of investments and savings.

Calculate the present value of future cash flows at a given discount rate.

Understand and apply the concept of annual increase in value (such as property or collectibles) to determine future value.

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Definitions:

Anticipatory Stressors

Upcoming or future events that are perceived to be threatening.

Sympathetic Division

Part of the autonomic nervous system that prepares the body for stressful or energetic activity, often termed the "fight or flight" system.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heart rate and digestion.

Cerebral Cortex

The outer layer of the brain, involved in complex brain functions such as thought, language, memory, and consciousness.