I need answer of this accounting questions A stock is trading at $75 with earnings per share of $3 and a growthrate of 12%. What is the PEG ratio? Will a value investor buy this? Willa PEG investor buy this? Who might buy this stock?

The PEG ratio (Price/Earnings to Growth ratio) is calculated using the formula: PEG Ratio = (P/E…

Answered: A stock is trading at $75 with earnings…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 11P

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A stock has a stock price of $40 and earnings per share this question solution
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Please answer both questions attached below in the image.
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A stock is trading at $75 with earnings per share of $3 and a growth rate of 12%. What is the PEG ratio? Will a value investor buy this? Will a PEG investor buy this? Who might buy this stock?