Pinnacle Financial Management Projects That Earnings Per Share for Valley

question 18

Multiple Choice

Pinnacle Financial Management projects that earnings per share for Valley Imports Inc.will increase from the current $1.75 per share to $2.00 next year.If Pinnacle recommends a P/E ratio of 12.5 for Valley Imports,what is the recommended forward looking price for the firm?

• A)$21.88 per share
• B)$25.00 per share
• C)$23.44 per share
• D)$6.25 per share

---

Definitions:

Self-Actualization

The completion or fulfillment of personal skills and potentialities, regarded as a vital pursuit or imperative in all human beings.

Self-Transcendence

A psychological state or process that involves transcending personal concerns, ego, and self-interest, often associated with experiences of deep connection to others, nature, or a higher purpose.

Mastery

The comprehensive knowledge or skill in a subject or accomplishment; achieving a command or understanding that suggests one is an expert.

Achievement Motivation

A drive or desire within individuals to accomplish goals, meet standards of excellence, or achieve success.