McDonald's stock currently sells for $123. Its expected earnings per share are $5.12. The average P/E ratio

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Question:

McDonald's stock currently sells for $123. Its expected earnings per share are $5.12. The average P/E ratio for the industry is 24. If investors expected the same growth rate and risk for McDonald's as for an average firm in the same industry, its stock price would

A. fall.

B. stay about the same.

C. rise.

D. there is not enough information.