Miller's Farm Has 120,000 Shares of Stock Outstanding,sales of $850,000,and

question 39

Multiple Choice

Miller's Farm has 120,000 shares of stock outstanding,sales of $850,000,and net income of $55,000.Financial analysts believe the price-earnings ratio for this firm should be 15.8.Given this information,what should be the current stock price?

• A) $7.24
• B) $8.87
• C) $14.85
• D) $14.57
• E) $15.21

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