Question of The Day

tock analyst:"We believe Company A's stock will appreciate at 35% a year for the next 5 to 7 years. Company A just became the leader in its industry and we expect its sales to grow at 8% a year."

Commentator: "But how can the stock's price be expected to grow more quickly than the company's underlying sales?"

Which of the following, if true, would best support the stock analyst's prediction?

The company's expenses will be declining over the next 5 to 10 years.