Bay Marina,Inc

question 50

Multiple Choice

Bay Marina,Inc.has net income of $53,700 and has 30,000 shares of stock outstanding.Similar firms have a price-earnings ratio of 20.Given this,what should the market price of Bay Marina,Inc.stock be per share?

• A) $28.91
• B) $29.29
• C) $30.40
• D) $33.91
• E) $35.80

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Definitions:

Strictly Liable

Being legally responsible for damages or loss, irrespective of fault or intent.

Bailment

The transfer of possession of property from one person to another under agreement that the property will be returned or otherwise disposed of according to the terms of the agreement.

Fixture

An item of property that is attached to a building or land in such a way that it is considered legally part of the property.

Farmer

An individual or entity engaged in the practice of cultivating land, raising crops, and feeding, breeding, and raising animals or produce as part of agriculture.