Calculate Net Income Given the Following Information: Shares Outstanding =

question 76

Multiple Choice

Calculate net income given the following information: shares outstanding = 1,250,000; stock price = $35/share; PE ratio = 12.50.

• A) $2,500,000
• B) $2,750,000
• C) $3,000,000
• D) $3,250,000
• E) $3,500,000

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.

Office Furniture

Items designed for use in a work or office setting, including desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of an asset's cost to each year of its useful life.