MTB Surfboards Has a P/E of 20

question 34

Multiple Choice

MTB Surfboards has a P/E of 20.The discount rate for this firm is 30 percent.They had earnings of $2,000,000 and 100,000 shares of common stock outstanding.What should be the current price of the stock?

• A) $120.00
• B) $60.00
• C) $600.00
• D) $400.00
• E) $200.00

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Definitions:

Screen

To evaluate or assess something or someone in order to make a decision, often used in contexts like employment, investment, or healthcare.

Expected Loss

The anticipated amount of loss in an investment or insurance scenario, calculated by considering the probability and magnitude of possible losses.

Secure Neighborhood

A residential area that is well-guarded or designed with safety measures to protect residents and property.

Expected Loss

The anticipated amount of loss a party faces in a financial transaction or investment, calculated based on probable scenarios.