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:

Marketability

The ease with which a product or service can be sold in the market due to its demand, utility, and competitive pricing.

Instruments

Legal or formal documents such as contracts, wills, or deeds that establish rights, duties, or agreements.

Time Instrument

A type of draft that allows the payee to collect payment only at a specific time in the future.

Overdue

The state of being delayed beyond the expected or usual time.