The Intrinsic Value of a Stock Is Greater Than Its

question 7

Multiple Choice

The intrinsic value of a stock is greater than its current market price if

• A) The market price is higher than the present value of expected future cash flows.
• B) the stock's P/E ratio is higher than the market's average P/E ratio.
• C) the stock's IRR exceeds the required rate of return.
• D) the stock's P/CF ratio is higher than the market's average P/CF ratio.