ABC Inc Has Net Income of $41,600 and Total Equity of of 4381,000

question 76

Multiple Choice

ABC Inc. has net income of $41,600 and total equity of 4381,000. The firm has 60,000 shares of stock outstanding at a price of $14.20 a share. What is the firm's P/E ratio?

• A) 16.21
• B) 17.33
• C) 190.09
• D) 20.48
• E) 21.92

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Definitions:

Estimated Future Cash Flow

Projections of the amount of money expected to be generated or expended by a business in future periods.

Compound Interest Tables

Charts that indicate the amount of interest an investment will earn over time, factoring in the effect of compounding.

Equal Withdrawals

A term typically used in finance to describe a method of distributing assets or funds evenly over a set period of time.

Investment Plan

A financial strategy plotted for making investments in various assets with the goal of achieving specific financial objectives.