Big Joe's Burgers Has a P/E Ratio of 12 and a Beta

question 31

Multiple Choice

Big Joe's Burgers has a P/E ratio of 12 and a beta equal to 3.The risk-free rate is 8 percent and the return to the market has been 14 percent.The firm has an EPS of $5.00.What should be the current market price of Big Joe's stock?

• A) $120.00
• B) $96.00
• C) $44.40
• D) $60.00
• E) $55.20

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Definitions:

Referent Power

The influence one possesses that stems from others' respect, admiration, or identification with them.

Empowerment

The act of granting power or authority to individuals or groups, enabling them to make decisions and take actions autonomously.

Objectives And Priorities

outline the goals and the importance or order in which these goals should be addressed or achieved, acting as guidance for decision-making and resource allocation.

Mutual Trust

A reciprocal belief between individuals or groups that each can depend on the other to act beneficially or to support each other's actions.