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

question 64

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 market-to-book ratio?

• A)0.66
• B)0.78
• C)0.92
• D)1.08

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Definitions:

Eccrine

Referring to eccrine sweat glands, which are responsible for regulating body temperature through sweat secretion.

Apocrine

A type of gland that releases some of its cellular material along with its secretions, commonly found in areas like the underarms and pubic region.

Spinosum

The stratum spinosum is a layer of the epidermis located just above the basal layer, known for its strength and ability to resist abrasion.

Lucidum

A layer of the epidermis found only in the palms of the hands and the soles of the feet, characterized by clear, dead keratinocytes.