The Following Items Are Taken from the Financial Statements of the Postal

question 74

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the company's net income for the year ending December 31, 2015?

• A)$12,000
• B)$28,000
• C)$42,000
• D)$133,000

---

Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, considering the risk involved in holding the company's shares.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Growth Opportunities

Prospects or possibilities for financial growth and expansion within a company or market, often through investment in new projects or sectors.

P/E Ratio

Price-to-Earnings Ratio; a valuation ratio of a company's current share price compared to its per-share earnings.