A Company with a PEG Ratio of Less Than One

question 2

Multiple Choice

A company with a PEG ratio of less than one would be interpreted as having a stock price:

• A) that is underpriced given earnings and expected earnings growth.
• B) that is low relative to the company's growth prospects.
• C) that is high relative to the company's growth prospects.
• D) that is overvalued.

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Definitions:

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