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

question 72

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 P/E ratios for its competitors,the highest expected stock price for Novartis is closest to:

• A)$31.86.
• B)$44.35.
• C)$51.09.
• D)$62.60.

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Definitions:

Level Of Significance

A threshold within a statistical test that defines the probability of incorrectly rejecting the null hypothesis, often denoted by alpha.

Percentages

A fraction or ratio where a value is represented as a part of one hundred.

Newly-Married Couples

Partners who have recently entered into marriage, beginning their life together as a legally recognized relationship.

Level Of Significance

A threshold chosen by the researcher which determines the probability of rejecting the null hypothesis when it is actually true, commonly denoted by alpha (α).