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:

Distribution Of The Data

Describes how the values of a dataset are spread or distributed across possible values.

Line Graph

A type of chart used to visualize changes over time by plotting data points connected by straight line segments.

Number Of Customers

Refers to the total count of individual clients or consumers that purchase or engage with a business's products or services.

Stem-and-Leaf Plot

A graphical method used to display quantitative data where each data point is split into a "stem" (the leading digit(s)) and a "leaf" (the last digit).