McDonald's Stock Currently Sells for $103

question 2

Multiple Choice

McDonald's stock currently sells for $103.It's expected earnings per share are $5.50.The average P/E ratio for the industry is 24.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:

Hierarchy of Needs

A model proposed by Abraham Maslow arranging human needs in a pyramid, with basic needs at the bottom and self-actualization at the top.

Motivated

The state of having a desire or willingness to act or achieve something, driven by internal or external factors.

Construct System

A psychological framework that refers to an individual's unique organization of concepts and perceptions.

Predicts Events

The act of forecasting or projecting future occurrences based on current or past data.