McDucket, Inc

question 52

Multiple Choice

McDucket, Inc. generates net profit of $592,000 and has a price-book ratio of 5.2. Total assets are $2,320,000 and total liabilities are $1,289,000. The company has 560,000 common stock outstanding. What is the price-to-earnings ratio?

• A)9.06
• B)9.23
• C)10.12
• D)10.80
• E)11.70

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Definitions:

Latent Needs

Desires or requirements of consumers that they are themselves not aware of.

Consumer Buying Habits

Patterns and behaviors that consumers exhibit in the search for, purchase, use, and disposal of products and services.

Value Chains

A value chain is a series of activities that businesses conduct to bring a product or service from its conception to distribution and beyond, aiming to add value at each stage.

Environmental Scanning

The process of systematically gathering, analyzing, and interpreting data about trends, events, and relationships in an organization's external environment to identify opportunities and threats.