Electronics Galore Has Historically Had a P/E Ratio of 23

question 7

Multiple Choice

Electronics Galore has historically had a P/E ratio of 23.4.This ratio is considered a good estimate of the future ratio.The firm currently has EPS of $1.68.These earnings are expected to increase by 4.2 percent next year.What is the expected price of this stock one year from now?

• A)$39.31
• B)$40.96
• C)$41.25
• D)$42.78
• E)$43.79

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Definitions:

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety by denying or distorting reality.

Low-Income Groups

Social and economic classification for individuals or families with significantly lower income levels compared to the average in a society.

Well-Adjusted

Refers to an individual who is mentally and emotionally stable, able to handle stress, and adapt to various social situations effectively.

Defensive Coping

Strategies used to protect oneself from psychological harm through denial, avoidance, or by deflecting difficult emotions or situations.