Assistant Professor 3 Interview Questions and Answers

Different types of capital budgeting decisions include expansion, replacement, new product, and lease vs buy decisions.

• Expansion decisions involve investing in projects that will increase the size or capacity of the business.

• Replacement decisions involve replacing old equipment or assets with new ones to improve efficiency or reduce costs.

• New product decisions involve investing in the development and launch of new products or services.

• Lease vs buy decisions involve determinin...read more

P/E ratio is a financial metric used to evaluate a company's stock price relative to its earnings per share.

• P/E ratio is calculated by dividing the current stock price by the earnings per share (EPS)

• It helps investors determine if a stock is overvalued or undervalued

• A high P/E ratio may indicate that a stock is overvalued, while a low P/E ratio may indicate undervaluation

• For example, if a company's stock is trading at $50 per share and its EPS is $5, the P/E ratio would be 10