Exhibit 14 -You Are Provided with the Following Information About Javier Corporation

question 66

Multiple Choice

Exhibit 14.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { l c c } & \text { Wal-Elue } & \text { Industry } \\ \text { DPS } & 1.00 & 1.50 \\\text { Total As5et Tunover } & 3.20 & 2.50 \\\text { Net Profit Marpin } & 3.50 \% & 3.00 \% \\\text { EpS } & 4.00 & 3.00 \\\text { Total As5ets/Equity } & 3.00 & 4.00\end{array}$$
-You are provided with the following information about Javier Corporation.Sales for the year 2010 were $500,000,the Net Profit Margin (NPM) was 15%.Analysts project sales to grow by 12% next year (that is 2011) .However,because of more competition,the NPM is expected to decline by 10% for the year 2010.The expected P/E multiple for the year 2011 is 22.The total number of shares outstanding is 20,000.Use the earnings multiplier model to calculate the expected price for Javier Corporation in the year 2011.

• A) $74.25
• B) $61.6
• C) $82.5
• D) $83.16
• E) $101.64

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