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

question 104

Multiple Choice

Zorba's is a small chain 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 $1.21 per share and next year's earnings are forecasted at $1.46 per share.A reasonable price for a share of Zorba's stock is

• A)$24.09.
• B)$19.96.
• C)$20.23.
• D)$16.50.

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Definitions:

KMnO4

Potassium permanganate, a chemical compound used as an oxidizing agent in various chemical reactions, known for its purple color.

Major Organic Product

The primary product resulting from an organic reaction, typically the one in greatest yield, when multiple products are possible.

Hept-3-Yne

An organic compound characterized by a seven-carbon chain with a triple bond between the third and fourth carbon atoms.

Permanganate

A powerful oxidizing agent, often encountered as potassium permanganate (KMnO4), used in various chemical reactions and as a disinfectant.