\begin{tabular}{l|l} \hline Question 1 & You're trying to value a mature and profitable firm's stock based on comparable firms' \\ \hline Not yet saved & backward-looking price-to-earnings (PE) multiples. \\ Marked out of & Your firm's PE ratio is 12 , while similar firms' PE ratios average 16. \\ \hline 3.00 & Assuming that you're correct, this implies that the stock is: \\ \hline Remove flag & Select one: \end{tabular} a. Under-valued and you should buy it. b. Under-valued and you should sell it. c. Over-valued and you should buy it. d. Over-valued and you should sell it. e. Fairly-valued and you would be indifferent between buying or selling it