Chipotle Mexican Grill Stock Split Quiz
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Chipotle Mexican Grill Stock Split Quiz

Created by
@MeaningfulTachisme

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Questions and Answers

What valuation metric is used to assess how much investors pay for a company's earnings growth?

  • Price-to-earnings growth (PEG) ratio (correct)
  • Forward P/E ratio
  • Return on investment (ROI) ratio
  • Price-to-sales ratio
  • Why does the author consider Chipotle stock unreasonably expensive?

  • Low growth potential
  • Stagnant earnings
  • High PEG ratio (correct)
  • Lack of store expansion
  • What do steady share repurchases by Chipotle contribute to in terms of growth?

  • Decrease in number of stores
  • Decrease in earnings
  • Increase in shareholder dividends
  • Increase in long-term earnings growth (correct)
  • Based on the content, why does the author advise being patient with Chipotle stock?

    <p>To wait for a better buying opportunity</p> Signup and view all the answers

    What hypothetical conditions would make Chipotle stock a buy according to the author?

    <p>$53 earnings per share and trading at 30 times earnings</p> Signup and view all the answers

    What is the author recommending regarding investing in Chipotle Mexican Grill at the moment?

    <p>Wait for a better buying opportunity</p> Signup and view all the answers

    What is the purpose of Chipotle's 50-to-1 stock split?

    <p>To make it easier for investors to accumulate shares of the stock</p> Signup and view all the answers

    How will Chipotle's current share price of $2,880 be affected by the 50-to-1 stock split?

    <p>The share price will decrease to $57.60</p> Signup and view all the answers

    Why do company employees typically like stock splits?

    <p>It makes it easier for them to sell the equity they've acquired working for the company</p> Signup and view all the answers

    How does a stock split impact a company's fundamental valuation?

    <p>It has no impact on the company's fundamental valuation</p> Signup and view all the answers

    What is the author's stance on Chipotle's stock split?

    <p>The author is neutral on Chipotle's stock split</p> Signup and view all the answers

    What is the key reason why investors like stock splits?

    <p>It makes it easier for them to accumulate shares of the stock</p> Signup and view all the answers

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