1. According to critics, the Glass-Steagall Act:
a. led to risky competition.
b. encouraged rampant and harmful product promotion.
c. loosened government control over commodity pricing.
d. impeded financial innovation.
2. Assume that EA is trading for $116 and the company has the following financial results: EPS = $3.73 Growth is projected to be 12% The required rate of return for investors of this type of company is 18% Using EPS, and not Dividends in the Dividend Discount Model, would you buy this stock?
No. The value of the stock is $65.89 and it is trading at $116
Yes, the value is $65.89 and the company is trading at $116
Not enough information to answer
It depends upon the business cycle