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A Firm Has Net Income of $22,500 and a Book

question 39

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A firm has net income of $22,500 and a book value per share of $3.10. The firm has 30,000 shares of stock outstanding and a price-earnings ratio of 15.9. What is the price-book ratio?

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Definitions:

Exchange Theory

A social theory that describes social relationships as transactions where individuals seek to maximize rewards and minimize costs in interactions with others.

Reciprocal

Involving mutual action or relationship where two or more entities give and receive something of equivalent value or effect.

Stressful

Involving or causing a state of mental or emotional strain or tension.

Future Romances

Imagined or potential romantic relationships that may occur in an individual's future.

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