Determine the Net Income of a Comparable Firm Based on the Following

question 1

Multiple Choice

Determine the net income of a comparable firm based on the following information: value of the target firm = $4,000,000; net income of the target firm = $200,000; stock price of the comparable firm = $30; and number of shares of stock outstanding for the comparable firm = 300,000.

• A)$450,000
• B)$500,000
• C)$550,000
• D)$600,000

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Definitions:

Appreciation

Recognition and enjoyment of the good qualities of someone or something, often leading to expressions of gratitude.

Trouble

Trouble refers to problems or difficulties that cause distress, inconvenience, or concern.

Positive Context

Situations or settings that create or contribute to a positive outcome or perception.

Main Idea

The central concept or most important point that an author or speaker aims to communicate to their audience.