Ontario Ice Corporation Has an Expected Profit Margin of 10

question 25

Multiple Choice

Ontario Ice Corporation has an expected profit margin of 10%, turnover ratio of 3, and a leverage ratio of 0.50.The firm expects an EPS of $3 next year and maintains a retention ratio of 60%.What should the share sell for today if the required return is 15%?

• A)$13.33
• B)$20.00
• C)$26.67
• D)$30.00

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Definitions:

Immanent Justice

The view that a negative experience is a direct consequence of wrongdoing, reflecting the belief that morality is embedded within the structure of the universe.

Decentrations

The cognitive ability to consider multiple aspects of a situation rather than focusing only on a single point of view.

Concrete Operations

In developmental psychology, a phase where individuals gain the ability to understand logical operations in tangible situations and solve problems involving physical objects.

Formal Operations

The fourth stage in Piaget’s cognitive-developmental theory, characterized by the capacity for flexible, reversible operations concerning abstract ideas and concepts, such as symbols, statements, and theories.