One key to setting prices properly is based on understanding a company's ________

What is a "significant regulatory action"?

A. A rule to control risk in financial markets. B. A rule with an annual effect on the economy of $100 million or more. C. A rule that gives the federal government wide power to regulate business. D. A rule to bring "Relief, Recovery, and Reform."

In the price/earnings approach to stock valuation,

A) historical stock prices are utilized. B) forecasted EPS are typically used. C) the P/E ratio is computed by multiplying the stock price by the earnings per share. D) the market P/E ratio, adjusted by beta, is used to value individual stocks.