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7. You have the following information on IBM and Texas Instruments (TI): Earnings growth Current PE IBM 15 12.5 TI 10 12.0 Based on a
7. You have the following information on IBM and Texas Instruments (TI):
Earnings growth Current PE
IBM 15 12.5
TI 10 12.0
Based on a common "rule of thumb", according to the PEG ratio, which of the following statements is correct?
Group of answer choices
a. IBM is a bargain, TI is a bargain
b. IBM is a bargain, TI is overvalued
c. IBM is overvalued, TI is a bargain
d. IBM is overvalued, TI is overvalued
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