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A Company with a PEG Ratio of Less Than One

Question 20

Multiple Choice
A company with a PEG ratio of less than one would be interpreted as having a stock price:
A) that is underpriced given earnings and expected earnings growth.
B) that is low relative to the company's growth prospects.
C) that is high relative to the company's growth prospects.
D) that is overvalued.

A company with a PEG ratio of less than one would be interpreted as having a stock price:


A) that is underpriced given earnings and expected earnings growth.
B) that is low relative to the company's growth prospects.
C) that is high relative to the company's growth prospects.
D) that is overvalued.

Correct Answer:

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