An Analyst Has Determined That the Intrinsic Value of HPQ

question 84

Multiple Choice

An analyst has determined that the intrinsic value of HPQ stock is $20 per share using the capitalized earnings model.If the typical P/E ratio in the computer industry is 25,then it would be reasonable to assume the expected EPS of HPQ in the coming year is ______.

• A)$3.63
• B)$4.44
• C)$0.80
• D)$22.50
• E)none of the above

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Definitions:

Conscious Experience

The aspects of awareness and perception that are accessible to introspection and reflective thought.

Neurophysiology

The study of the function and activities of the nervous system and its components.

Synapses

The junctions between neurons through which they communicate with each other, using chemical or electrical signals.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.