​Scenario: Pettijohn Inc -Refer to Scenario: Pettijohn Inc

question 6

Multiple Choice

​Scenario: Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.​​ $\begin{array}{lr}\text { Income Statement (Millions of } \$ \text { ) } & 2007 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 54,978.0 \\\text { Depreciation } & \$ 1,029.0 \\\text { Earnings before interest and taxes (EBIT) } & \$ 2,793.0 \\\text { Less interest } & 1,050.0 \\\text { Earnings before taxes (EBT) } & \$ 1,743.0 \\\text { Taxes } & \$ 610.1 \\\text { Net income } & \$ 1,133.0 \\\text { Other data: } & \\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & \$ 509.83 \\\text { Interest rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 35 \% \\\text { Year-end stock price } & \$ 77.69\end{array}$
-Refer to Scenario: Pettijohn Inc.What is the firm's book value per share?

• A)$61.73
• B)$64.98
• C)$68.40
• D)$72.00

---

Definitions:

Turnover Intentions

The inclination or intention of employees to leave their current job or organization.

Organizational Commitment

The psychological attachment and loyalty an employee has towards their organization, influencing their willingness to contribute to organizational goals.

Job Satisfaction

The extent to which employees feel content with their jobs, including aspects such as work tasks, environment, and relationships with coworkers and supervisors.

Embedded

Integrated or firmly ingrained within a particular environment, context, or system.