Practice Exams, Volume 2, Exam 3, PM, Q100
Practice Exams, Volume 2, Exam 3, PM, Q100
The vignette states that he used forecasted fundamentals to establish a justified P/E. This means he is referring to the leading P/E.
Multiplying the leading P/E by the net profit margin - (E/S) will not produce the P/B ratio. Only the trailing will.
He is wrong about the P/S.
The answer states he is right.
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