ABC Has a Net Profit Margin of 4

question 104

Multiple Choice

ABC has a net profit margin of 4.3 percent on sales of $12,000,000. The firm has 250,000 shares outstanding. If the firm's P/E is 16 times, how much is the stock selling for?

• A) $41.72
• B) $35.96
• C) $25.40
• D) $33.02

---

Definitions:

Fixed Action Patterns

Innate, pre-programmed responses triggered by specific stimuli, observed in animals, which are carried out to completion once initiated and are common in mating and defensive behaviors.

Stereotyped Behavior

Stereotyped behavior involves repetitive, rigid, and often meaningless patterns of action that are characteristic of certain developmental or psychological conditions.

A Misdemeanor

A criminal offense that is less serious than a felony and generally punishable by fines, penalties, or a short term of imprisonment.

Petty Offenses

Minor legal violations that typically result in a small fine or penalty and do not entail significant legal consequences.