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:

Drug Use

Drug use involves the consumption of substances for medical purposes or recreationally, which can affect the body and mind in various ways.

Memory Loss

The inability to remember information or experiences, which can be temporary or permanent, and may result from various causes.

Social Surroundings

The environment of individuals consisting of cultural, social, and physical environments in which they live and interact.

Peers Use

Refers to the adoption or modeling of behaviors based on the influence of one's peer group.