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The financial information of Z, Inc. is as follows: EBIT/share: $6 EPS: $4.5 Growth rate: 10% Stock Price per share: $60 The industry averages of
The financial information of Z, Inc. is as follows: EBIT/share: $6 EPS: $4.5 Growth rate: 10% Stock Price per share: $60 The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 15, and 1.2 respectively. 1. The implied stock price of Z, Inc. using the PE ratio is 2. The implied stock price of Z, Inc. using the PEG ratio is 3. The implied stock price of Z, Inc. using the pricc-EBIT ratio us 4. The ratio indicates that Z is undervalued is (A. PE ratio, B. PEG ratio, C. Price-EBIT ratio, enter A/B/C)
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