Zorba's Is a Small Chain of Of Restaurants Whose Stock

question 17

Multiple Choice

Zorba's is a small chain of of restaurants whose stock is not publicly traded.The average P/E ratio for similar restaurant chains is 16.5;the P/E ratio for the S&P 500 Index is 15.2.This year's earnings were $1.10 per share;next's earnings are expected to be $1.21 per share.A reasonable price for a share of Zorba's stock is:

• A)$19.97.
• B)$18.15.
• C)$20.23.
• D)$16.72.

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Definitions:

Deontological Theory

A moral philosophy that emphasizes the importance of duty and the inherent rightness or wrongness of actions, regardless of the consequences.

Moral Worth

The value of actions or principles based on their ethical soundness or righteousness.

Functionalist Approach

A perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.

Restorative Justice

A system of criminal justice that focuses on the rehabilitation of offenders through reconciliation with victims and the community.