The Charleston Company is a relatively small, privately owned firm. Last year, the company had an after-tax income of $15,000 and 10,000 shares were outstanding. The owners were trying to determine the market value for the stock prior to taking the company public. A similar firm, which is publicly traded, had a price/earnings ratio of 5.0. Using only the information given, the market value of one share of Charleston's stock is estimated as:
A. $10.00.
B. $7.50.
C. $5.00.
D. $2.50.
E. $1.50.
Answer: B
You might also like to view...
Answer the following statements true (T) or false (F)
1. The key to evaluating your sources is to analyze the information, the author, and the publisher. 2. The more statistics you use in your presentation, the better supported your argument will be. 3. You do not need to cite your sources in oral presentations. 4. Always begin your presentation by introducing yourself to the audience. 5. The last sentence should signal the presentation is finished, with phrases such as, “I’m done,” or, “That’s all I have to say.”
Choose and design graphics to emphasize important ideas and a major theme and to match _____________
a. the organization's mission statement b. your audience's needs c. what others have already said d. the room's décor
Which of the following is a similarity between the fictitious payee rule and the imposter rule?
A) Both hold the drawee liable on the instrument. B) Both hold the drawer liable on the instrument. C) Both put the risk of loss on the forger. D) Both put the risk of loss on the indorsee.
Which of the following is NOT considered to be a physical distribution activity?
a. e-tailing b. transportation c. warehousing d. order processing e. inventory management