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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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