Q42. An analyst gathered the following information for a U.S. company whose common stock is currently priced at $40 per share:
| 2000 | 2001 | 2002 | 2003 | 2004 | Earnings per share ($) | 1.16 | 0.62 | 1.28 | 1.60 | (1.30) | Book value per share($) | 8.48 | 8.92 | 16.04 | 19.28 | 16.30 | Return on equity | 14%.7% | 7% | 8% | 8% |
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Because of the severe cyclical contraction that occurred in 2004 for a major segment of the company's operations, the analyst has decided to normalize earnings using the 2000-2003 period. If the analyst also decides to account for changes in the company's size over time, the most appropriate estimate of the company’s 2004 price/earnings (P/E) ratio based on normalized earnings is: A.22.5 B.26.5 C.34.3 D.59.5 | 
发表于 2007-10-26 09:06
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