Question: In the previous problem, if the industry average P/E is 12.5, what could you conclude about Admiral Motors Company (AMC)? A. Growth investors would be

In the previous problem, if the industry average P/E is 12.5, what could you conclude about Admiral Motors Company (AMC)?

A. Growth investors would be very interested in AMC.

B. Warren Buffett would not be very interested in AMC.

C. AMC is properly valued for its industry

D. AMC has a lower P/E than the industry average and would be undervalued by value investors.

E. AMC has a higher P/E than the industry average and would be overvalued by value investors.

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