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:

Treasury Stock

Represents the portion of shares that a company keeps in its own treasury. These shares can be repurchased from the market and do not confer ownership rights.

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for stock, over and above the par value of the shares.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Treasury Stock

Equities which were first released to the public by a company and later repurchased by the same company, thus diminishing the total number of shares accessible in the marketplace.