Use the Following Information to Answer the Question(s)below

question 96

Multiple Choice

Use the following information to answer the question(s) below.
-Assuming that Novartis AG (NVS) has an EPS of $3.35,based upon the price-to-book ratios for its competitors,the lowest expected stock price for Novartis is closest to:

• A)$7.47
• B)$13.00
• C)$22.95
• D)$31.86

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Definitions:

Amortized

The process of spreading payments over multiple periods, typically in context of a loan or mortgage, which includes both interest and principal components.

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal balance of an investment or loan twice a year.

Amortized

The process of spreading out a loan into a series of fixed payments over time.

Amortization

The method of distributing a loan across a sequence of consistent installments over a period.