Question: Consider the following info on the current PE ratios, (expected) growth rates in earnings (%), and betas for Wal-Mart, Target and Costco: Firm Current PE

Consider the following info on the current PE ratios, (expected) growth rates in earnings (%), and betas for Wal-Mart, Target and Costco:

Firm	Current PE	Growth (%)	Beta
Wal-Mart	16.09	1.81	0.09
Target	13.66	5.85	0.48
Costco	25.21	10.21	0.85

Based on the info provided in the table, which of the following claims is the most reasonable? (Note: each company's PEG ratio is also provided in the table as it can be calculated using PE and growth.)

Group of answer choices

Costco is cheaper than Wal-Mart

Target is cheaper than Costco

Target is the cheapest one among these three stocks

Wal-Mart is the most expensive one among these three stocks

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