The Retail Analyst at Morgan-Sachs Values Shares of the GAP

question 85

Multiple Choice

The retail analyst at Morgan-Sachs values shares of the GAP at $38.00 per share.They are using the average industry 'forward' P/E ratio of 17.Their forecasted earnings per share for next year is [blank].

• A)$0.54.
• B)$1.50.
• C)$2.24
• D)$4.20

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Definitions:

Management by Reinforcement

A management strategy that employs the use of rewards and punishments to influence employee behavior towards desired outcomes.

Management by Exemption

A management style where leaders only intervene when standards are not met or when there are deviations from expected performance

Task-specific Self-efficacy

An individual’s internal expectancy to perform a specific task effectively.

Persuasion

The act or process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through arguments, reasoning, or appeal.