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:

Fixed Overhead

Expenditures that are consistent and independent of production or sales volume, like rent, salaries, and insurance.

Raw Material K

A specific, unidentified raw material that is utilized in the production process of goods.

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, often used by businesses to manage liquidity.