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Mercks earnings per share are $3.81 and the stock price is $82.84. What is the companys PE multiple? The industry PE is 17.95 and the

Mercks earnings per share are $3.81 and the stock price is $82.84. What is the companys PE multiple? The industry PE is 17.95 and the S&P PE is 13.95. What does this indicate about the risk of investing in Mercks shares?

- The estimate for the companys 2020 EPS is $5.58 and $6.24 for 2021. What are the forecasted stock prices for this year and next year? What investment strategy would you recommend? Why?

- The decision is made to invest in Merck. How would a limit order be used? What price would be set in the limit order if you are willing to take a 10% risk and a 20% risk?

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