Use the Following Information to Answer the Question(s)below

question 49

Multiple Choice

Use the following information to answer the question(s) below.
-Assuming that Novartis AG (NVS) has a book value of $20.00 per share,based upon the price-to-book ratios for its competitors,the lowest expected stock price for Novartis is closest to:

• A)$7.47.
• B)$13.00.
• C)$22.95.
• D)$44.60.

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Definitions:

Bank Reconciliation

A process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and to identify any discrepancies.

Bank Statement

A document provided by a bank, detailing the transactions in a customer's account over a specified period.

Cash Balance

The amount of cash a company has available at any point in time, as reflected in its financial statements.

Timing Differences

Discrepancies between the timing of cash flows and the recognition of revenues and expenses in accounting records.