The intrinsic value of a stock is greater than its current market price if
A) The market price is higher than the present value of expected future cash flows.
B) the stock's P/E ratio is higher than the market's average P/E ratio.
C) the stock's IRR exceeds the required rate of return.
D) the stock's P/CF ratio is higher than the market's average P/CF ratio.
Answer: C
You might also like to view...
Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: Common stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued…….$2,500,000Paid-in capital in excess of par, common stock...1,000,000Retained earnings……………………………….3,000,000The following selected transactions occurred during the current year:Feb. 15The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.Mar. 9Distributed the stock dividend.May 1A cash dividend of $0.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.June 1Paid the cash dividend.Aug. 20The board decided to split the stock 4-for-1, effective on
September 1.Sept. 1Stock split 4-for-1.Dec. 31Earned a net income of $800,000 for the current year.Prepare a statement of retained earnings as of December 31 of the current year. What will be an ideal response?
Group decision support systems were designed to get rid of anonymity
Indicate whether the statement is true or false
Which of the following does a Statement of work (SOW) typically not contain?
A) Non-functional requirements (speed and time, capacity and reliability) B) An identification of who will do the work C) The objectives of the work to be done D) The location of where the work will be done
The following SQL statement contains which type of subquery? SELECT title FROM books WHERE EXISTS (SELECT isbn FROM orderitems WHERE books.isbn = orderitems.isbn);
a. multiple-column b. inline view c. correlated d. uncorrelated