A Company Is Expected to Have a Value of $142,857

question 35

Multiple Choice

A company is expected to have a value of $142,857 at the start of next period and investors require a 14 percent return on equity capital.Using the assumptions of the price-earnings ratio,what would be the company's earnings for the current year?

• A) $20,000
• B) $14,286
• C) $2,800
• D) $12,500

---

Definitions:

Head Start Program

A federal program in the United States that promotes the school readiness of children under 5 from low-income families through education, health, social, and other services.

School Achievement

The academic performance and outcomes of individuals or groups in educational settings, often measured by grades, test scores, and graduation rates.

Uniquely Human

Characteristics, traits, or behaviors that are believed to be distinct to humans, differentiating them from other species.

Functional Fixedness

A mental bias causing people to see an item solely in terms of its conventional use, which obstructs creative thinking and the ability to solve problems.