Due to Growing Demand for Computer Software, the Shine Company

question 79

Essay

Due to growing demand for computer software, the Shine Company has had a very successful year and expects its earnings per share to grow by 25 percent to reach $5.50 for this year. Estimate the price of the company's common stock assuming the industry's price/earning ratio is 12.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

MBTI

The Myers-Briggs Type Indicator, a personality test that categorizes individuals into 16 personality types based on their preferences in perceiving the world and making decisions.

Sensing/Intuition

A concept often used in personality assessments to describe how individuals perceive and process information—sensing refers to perceiving through the five senses, while intuition involves seeing the big picture and patterns.

Internal/External Locus

Refers to the degree to which individuals believe they have control over events affecting them. Internal locus means believing one can control events, while external locus means belief that external forces control outcomes.