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.
