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NEW QUESTION: 1
A. Option B
B. Option C
C. Option D
D. Option A
Answer: B
NEW QUESTION: 2
A comprehensive personnel security program should include:
A. None of the above
B. All of the above
C. Appropriate selection and recruitment criteria
D. Both A and B
E. Truth verification standards
F. Adequate job specifications and performance standards
Answer: B
NEW QUESTION: 3
Given the following assumptions about a company抯financial estimates, calculate the P/E ratio, and determine whether the stock is undervalued or overvalued.
Which of the following statements is most correct? The P/E ratio is:
A. 7.41 and the stock is underpriced.
B. 6.78 and the stock is overpriced.
C. 7.41 and the stock is overpriced.
D. 6.78 and the stock is underpriced.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
First, determine the value of the stock. Then, compare your calculation to the current market price. The assumptions lead us to use the P/E (earnings multiplier) and EPS to calculate the value.
Step 1: Estimate the P/E ratio
Step 2: Estimate Earnings Per Share (given at $2.75)
Step 3: Calculate value
Step 4: Determine under/over valuation
Since the market value is greater than the estimated value, the stock is overpriced.
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