Legacy Industries Inc

question 8

Multiple Choice

Legacy Industries Inc.has a historic P/E multiple of 15,a current EPS of $2.50 projected to grow by 4% in the coming year,and a forward looking P/E multiple of 18.With this information please estimate the current price of the firm's stock.

• A)$37.50
• B)$46.80
• C)$39.00
• D)$48.20

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Definitions:

Sigmund Freud

An innovator in neurology from Austria, he established the practice of psychoanalysis for the treatment of mental disorders through discussions between patients and psychoanalysts.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual that is distinct across people.

Humanist

An individual who adopts a worldview emphasizing the value and agency of human beings, individually and collectively, often in contrast to religious or supernatural beliefs.