A Company Has Current EPS of $1

question 120

Multiple Choice

A company has current EPS of $1.42 and a projected EPS growth of 14%. Historically, the firm's P/E ratio has been 24.8 with sales per share of $7.20. What is the expected share price next year?

• A) $40.15
• B) $42.14
• C) $48.67
• D) $46.31
• E) $39.97

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Definitions:

Unfounded Attitude

An opinion or perspective that is not based on evidence or experience.

Class

A group of students who are taught together in school or a categorization based on shared characteristics or attributes.

Cognitive Dissonance

The mental discomfort or psychological stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Psychological Discomfort

A state of emotional distress or unease, often arising from situations that challenge one's existing beliefs or perceptions.