Currently, Southern Foods Has Sales of $1

question 64

Multiple Choice

Currently, Southern Foods has sales of $1.32 million, net profit of $521,400, and 125,000 shares of stock outstanding. The sales and net profit are each expected to grow by 6 percent annually. The historical P/S ratio is 7.8. What is the expected price of this stock one year from now?

• A)$32.54
• B)$34.49
• C)$82.37
• D)$85.15
• E)$87.31

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Definitions:

Proto-oncogene

A normal gene that can become an oncogene due to mutations or increased expression, potentially leading to cancer.

Oncogene

Cancer-causing gene formed by a mutation in a proto-oncogene; codes for proteins that stimulate the cell cycle and inhibit apoptosis.

Pesticides

Chemical substances used to kill, repel, or control pests, including insects, weeds, rodents, and fungi that affect plants or animals.

Ultraviolet Radiation

A type of electromagnetic radiation with wavelengths shorter than visible light but longer than X-rays, capable of causing chemical reactions and damage to living organisms.