The Current Earnings Per Share for Axaon Corp

question 26

Multiple Choice

The current earnings per share for Axaon Corp. stock is $0.21. If the P/E ratio of the company is 32 and earnings are expected to grow at 12.1 percent, what is the expected stock price in five years?

• A) $7.63
• B) $11.90
• C) $9.12
• D) $8.67
• E) $6.72

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Definitions:

Self-Monitor

The act of observing and regulating one's own behavior in social situations to fit into the expected norms or to achieve personal goals.

Nonreactive

A state or characteristic of not responding to stimuli or environmental factors.

Reactive

Responding to stimuli or events after they have occurred, rather than initiating action preemptively.

Independent

The state of being free from outside control or not influenced by others, often used in the context of research to describe variables not affected by others.