All Other Things Equal,analysts Prefer Companies with Peg Ratios That
All other things equal,analysts prefer companies with PEG ratios that
A)match or exceed the companies' earnings growth rates.
B)match or exceed the companies' book values.
A company's book value is determined by
A)applying the CAPM valuation model.
B)applying a price-to-earnings model.
C)dividing its assets by the number of common shares outstanding.
D)dividing its net worth by the number of common shares outstanding.
Which statement below regarding book value is not appropriate?
A)It may not reflect a company's ability to generate future cash inflows.
B)It includes the market's valuation of the company's good will.
C)It reflects historical costs of assets,which may be poor indicators of those assets' replacement costs.
D)It often is a poor estimate of a company's fundamental value.
A company's book value
A)reflects the historical cost of a company's assets.
B)is often a good estimate of a company's fundamental value.
C)includes a value for goodwill.
D)is equal to the total value of a company's assets.2