-
gmatblood
- Master | Next Rank: 500 Posts
- Posts: 489
- Joined: Tue Jul 05, 2011 11:10 am
- Thanked: 28 times
- Followed by:5 members
Over the past 5 years, Company X has posted double-digit growth in annual revenues, combined with a substantial improvement in operating margins. Since this growth is likely to persist in the future, the stock of Company X will soon experience dramatic appreciation.
The argument above is based on which of the following assumptions?
Company X has a large market share in its industry.
Prior to the last 5 years, Company X had experienced similarly dramatic growth in sales associated with stable or improving operating margins.
The growth of Company X is likely to persist in the future.
The current price of the stock of Company X does not fully reflect the promising growth prospects of the firm.
The stock of Company X will outperform other stocks in the same industry.
The argument above is based on which of the following assumptions?
Company X has a large market share in its industry.
Prior to the last 5 years, Company X had experienced similarly dramatic growth in sales associated with stable or improving operating margins.
The growth of Company X is likely to persist in the future.
The current price of the stock of Company X does not fully reflect the promising growth prospects of the firm.
The stock of Company X will outperform other stocks in the same industry.
