McDonald's Stock Currently Sells for $77

question 46

Multiple Choice

McDonald's stock currently sells for $77.50.It's expected earnings per share are $4.50.The average P/E ratio for the industry is 23.3.If investors expected the same growth rate and risk for McDonald's as for an average firm in the same industry,it's stock price would:

• A)stay about the same.
• B)rise.
• C)fall.
• D)there is not enough information.

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Definitions:

Includes

Generally means to contain as a part of something. In various contexts, it can refer to the incorporation of elements or features within a larger system or set.

Indirect Methods

Techniques or approaches that assess or influence subjects without direct interaction, often used in research or assessment.

Intrusive

Referring to actions or things that are invasive or forcefully inserted into a situation or space without welcome.

Problem Behavior

Actions or patterns of behavior that are socially unacceptable or harmful to oneself or others.