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

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Definitions:

Motivated

Having the desire and willingness to achieve something, often driven by internal or external factors that inspire action.

Co-Workers

Individuals who work together in the same organization or on the same team, but not necessarily in the same role or position.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their social position.

PJ Fit

The compatibility between an individual's personality and job, which can influence job satisfaction and performance.