A Firm Has a Share Price of $54

question 48

Multiple Choice

A firm has a share price of $54.75 per share. The firm's earnings are $75 million and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback of 65%. What is the firm's PEG ratio?

• A)1.50
• B)1.25
• C)1.10
• D)1.00

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Definitions:

Dyadic Explanations

An analysis or discussion that involves two participants, often focusing on how their individual actions or perspectives relate to each other.

Assumptions

Beliefs or ideas taken for granted without proof, often serving as the foundation for decision-making and action.

Leadership

The activity of directing or guiding a collective towards the attainment of a mutual aim.

Dyadic Explanations

These involve understanding relationships or phenomena in terms of the interaction between two entities or individuals.