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

question 12

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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


Definitions:

Burial

In geology, this refers to the process of layering sediments on top of each other, which can lead to the formation of sedimentary rocks or the fossilization of organisms.

Compaction

Process by which soil, sediment, and volcanic materials lose pore space in response to the weight of overlying material.

Cementation

The precipitation of a binding material (the cement) around grains in sedimentary rocks.

Rock Types

Rock types are classifications of rocks based on their genesis, including three main categories: igneous, sedimentary, and metamorphic.

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