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McDonald's Stock Currently Sells for $77

Question 46

Multiple Choice

McDonald's stock currently sells for $77.50.It's expected earnings per share are $4.50.The average P/E ratio for the industry is 23.3.If investors expected the same growth rate and risk for McDonald's as for an average firm in the same industry,it's stock price would:


A) stay about the same.
B) rise.
C) fall.
D) there is not enough information.

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