ABC Has a Net Profit Margin of 3

question 77

Multiple Choice

ABC has a net profit margin of 3.3 percent on sales of $10,000,000. The firm has 50,000 shares outstanding. If the firm's P/E is 19 times, how much is the stock selling for?

• A) $41.72
• B) $34.96
• C) $125.40
• D) $99.16

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Definitions:

Communication Errors

Mistakes or failures in the process of exchanging information, which can distort or hinder the intended message.

Communication Process

The series of steps through which information is conveyed between senders and receivers, including message creation, transmission, reception, and interpretation.

Ambiguity

The quality of being open to more than one interpretation, lacking clarity, and creating uncertainty or doubt.

Media Richness

The theory that communication channels vary in their ability to convey information accurately and effectively.