If the Market Multiple Is 23

question 5

Multiple Choice

If the market multiple is 23.0 and the P/E ratio of a company is 27.4, then the stock's relative P/E is

• A) 0.84.
• B) 1.19.
• C) 3.21.
• D) 4.40.

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Definitions:

Personality Judgment

The process of making inferences about others' personalities based on observable information, including behavior, speech, and appearance.

Negative View

A pessimistic perspective that focuses on the drawbacks or unfavorable aspects of something.

Accuracy

The degree to which a measurement or calculation represents the true value or intended result without error or deviation.

IQ Score

A measure of a person's intellectual capabilities relative to others, typically quantified as a number derived from standardized tests.