What Is the Current Price of a Share of Stock

question 21

Multiple Choice

What is the current price of a share of stock for a firm with $5 million in balance-sheet equity,500,000 shares of stock outstanding,and a price/book value ratio of 4?

• A) $2.50
• B) $10.00
• C) $20.00
• D) $40.00

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Definitions:

Raises

Increases in an employee's base salary or wage rate, often awarded for performance, promotion, or inflation adjustments.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strengths

Attributes of an individual or organization that are beneficial and can be leveraged to achieve goals and overcome challenges.

Weaknesses

Aspects of an organization or individual that are detrimental to achieving its objectives and can be internal vulnerabilities or areas needing improvement.