Question
A company currently has EPS of 5 and a benchmark P/E is 40. Company earnings are expected to grow at 3% per year. What should
A company currently has EPS of 5 and a benchmark P/E is 40. Company earnings are expected to grow at 3% per year. What should be the current price of this company?
$200.00
$320.00
$240.00
$160.00
$280.00
________
Which of the following is a disadvantage of using the discounted payback rule? Choose the answer that fits best.
It is difficult to understand
It is based on accounting net income and book values, not cash flows and market values
It ignores time value of money
It is biased against liquidity
It may reject positive NPV investments
____________
What is the best method to use when expressing investment profitability as a percentage? Pick from the answers given below.
Payback period
NPV
AAR
IRR
Discounted payback period
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Investing All In One For Dummies
Authors: Eric Tyson
2nd Edition
1119873037, 978-1119873037
