If the Industry P/E Ratio Normally Varies from 15 to 20,which

question 96

Multiple Choice

If the industry P/E ratio normally varies from 15 to 20,which of the following prices is most appropriate for a company that has an EPS equal to $3?

• A) $57.60
• B) $40.00
• C) $188.20
• D) $43.20
• E) Not enough information is given to answer this question.

---

Definitions:

Retain Information

The process of keeping or memorizing facts or details over a period of time.

Listening Difficulty

Challenges or obstacles that prevent effective understanding of spoken communication.

Mind Wandering

The phenomenon of thoughts drifting away from the current task or focus, leading to daydreaming or thinking about unrelated topics.

Empathic Listening

A way of listening and responding to another person that improves mutual understanding and trust, by fully concentrating on the speaker's words and emotions.