Early in 2019, Mathew Is Analyzing Shares of Janeff Corp

question 104

Multiple Choice

Early in 2019, Mathew is analyzing shares of Janeff Corp. He expects the following dividends per share (end of year) . 2019 $1.00
2020 $1.25
2021 $1.50
He expects 2021 earnings per share to be $4.50 and Janeff's P/E ratio to be 20. His required rate of return for this stock is 12%. He should pay no more than

• A) $43.75 per share.
• B) $67.02 per share.
• C) $68.75 per share.
• D) $93.75 per share.

Understand the rules and options available to buyers and sellers regarding the risk of loss and destruction of goods.

Recognize the distinction between permissible and impermissible grounds for a seller or buyer to avoid a contract.

Comprehend the effects of contractual provisions on the perfect tender rule in sales transactions.

Identify the obligations of payment and the rights to inspection before payment in a sales contract.

---

Definitions:

General Ledger

A complete record of all financial transactions over the life of a company.

Computerized Accounting Systems

Systems that use software to record, store, and process financial transactions and data, improving efficiency and accuracy in accounting.

Business Segments

Distinct parts of a company that deal with different types of products or services, often reported separately in financial statements.

B2C

Stands for "Business to Consumer," describing transactions conducted directly between a company and consumers who are the end-users of its products or services.