Question
Which of the following statement is correct? If a firm has intrinsic value of $15 per share and its shares are traded at $10 per
Which of the following statement is correct?
| If a firm has intrinsic value of $15 per share and its shares are traded at $10 per shares, then this company is overpriced | ||
| If a firm has intrinsic value of $15 per share and its shares are traded at $10 per shares, then the market is efficient | ||
| P/E ratio analysis is prone to earnings managements | ||
| P/E ratio is higher, if ROE is lower |
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
