Bodle, Kane, Marcus, 9e, Equity Valuation Consider a company with a P/E ratio of 15, in an industry with an average P/E ratio of 20, and the same required return (k) as the industry average. This company is potentially appropriate addition to an investor's portfollo for which of the following reasons? an Click the answer you think is right. V The firm's PVGO is higher than the industry average. The firm's PVGO is lower than the industry average. The stock could be considered a value investment. The firm's growth prospects are stronger than average for the industry Read about this Do you know the answer?

Consider two cigarette companies, pm inc. and brown inc. if neither company advertises, the two companies split the market and earn $50 million each. if they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. yet if one company advertises while the other does not, the one that advertises attracts customers from the other. in this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. if these two companies collude and agree upon the best joint strategy, a. neither company will advertise. b. both companies will advertise. c. pm inc. will advertise but brown inc. will not. d. brown inc. will advertise but pm inc. will not.