A stock with a P/E of 20 and a PEG of 1.5 must have a higher expected growth rate than a stock with a P/E of 20 and a PEG of 0.5. True False A stock does not currently pay a dividend, but you expect to sell the stock for $58 in 5 years. The required return is 9%. What is the value of the stock?
A stock with a P/E of 20 and a PEG of 1.5 must have a higher expected growth rate than a stock with a P/E of 20 and a PEG of 0.5. True False A stock does not currently pay a dividend, but you expect to sell the stock for $58 in 5 years. The required return is 9%. What is the value of the stock?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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please respond to both. A stock with a P/E of 20 and a PEG of 1.5 must have a higher expected growth rate than a stock with a P/E of 20 and a PEG of 0.5.
True
False
A stock does not currently pay a dividend, but you expect to sell the stock for $58 in 5 years. The required return is 9%. What is the value of the stock?
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