Currently, Southern Foods Has Sales of $1

question 64

Multiple Choice

Currently, Southern Foods has sales of $1.32 million, net profit of $521,400, and 125,000 shares of stock outstanding. The sales and net profit are each expected to grow by 6 percent annually. The historical P/S ratio is 7.8. What is the expected price of this stock one year from now?

• A)$32.54
• B)$34.49
• C)$82.37
• D)$85.15
• E)$87.31

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Definitions:

1900s

A century that spanned from January 1, 1900, to December 31, 1999, marked by significant events such as World War I and II, and the onset of the digital age.

1920s

A decade characterized by economic prosperity and cultural change in the United States, often referred to as the "Roaring Twenties."

1950s

A decade marked by the aftermath of World War II and the beginning of the Cold War, characterized by significant social, economic, and technological changes globally.

1970s

A decade marked by significant events such as the oil crisis, the end of the Vietnam War, and notable shifts in culture and technology.