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Author Question: If the average PE ratio for the construction industry is 15 and earnings per share for Lincoln ... (Read 31 times)

09madisonrousseau09

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Question 1

If a company's P/E ratio is larger than its P/E constant then the shares are ________ and you should ________.
◦ overvalued, buy
◦ overvalued, sell
◦ undervalued, buy
◦ undervalued, sell
◦ fairly valued, hold

Question 2

If the average PE ratio for the construction industry is 15 and earnings per share for Lincoln Builders is $2.35, what is the current price of Lincoln's stock?
◦ $17.35
◦ $6.38
◦ $35.25
◦ $0.16
◦ $17.63


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Marked as best answer by 09madisonrousseau09 on Apr 25, 2021

leannegxo

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09madisonrousseau09

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


kusterl

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Reply 3 on: Yesterday
Excellent

 

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