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:

Traditional IQ Tests

Standardized tests designed to measure human intelligence through various types of cognitive tasks.

Career Success

The achievement of personal work goals and accomplishments, often measured by advancements, recognition, and satisfaction in one’s career.

Business Executives

Individuals who hold senior managerial positions within a company, responsible for strategic planning and decision-making.

Marginally Reliable

Describes information, data, or results that are barely or minimally dependable, with some level of uncertainty or risk of inaccuracy.