Electronics Galore Has Historically Had a P/E Ratio of 22

question 78

Multiple Choice

Electronics Galore has historically had a P/E ratio of 22.1. This ratio is considered a good estimate of the future ratio. The firm currently has EPS of $1.78. These earnings are expected to increase by 5.0 percent next year. What is the expected price of this stock one year from now?

• A)$39.31
• B)$40.96
• C)$41.30
• D)$42.78
• E)$43.79

---

Definitions:

Cultural Socialization

Parental practices that teach children about their racial/ethnic heritage and promote cultural practices and cultural pride.

Thanksgiving Tradition

Practices and customs associated with the celebration of Thanksgiving, including meals, family gatherings, and activities.

Cultural Reciprocation

The mutual exchange and adaptation of cultural practices, beliefs, and knowledge between different cultures.

Sexual Orientation

A person's sexual identity in relation to the gender to which they are attracted.