Use the Following Information to Answer the Question(s)below

question 30

Multiple Choice

Use the following information to answer the question(s) below.
Suppose the market consists only of Merck (MRK) and Boeing (BA) .Merck stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing has 697.5 million shares outstanding and a market capitalization of $38.223 billion.Assume that you hold the market portfolio.
-Boeing's stock price is closest to:

• A)$18.25.
• B)$36.70.
• C)$54.80.
• D)$63.40.

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Definitions:

Gross Method

An accounting practice where discounts for prompt payments are not deducted from invoice amounts unless a payment is made within the discount period.

Vouchers Payable

Obligations or debts owed by a company for goods and services that have been received but not yet paid for.

Purchases Discount

A reduction in the price paid for goods, given for early payment according to the terms of purchase.

Voucher Register

A record-keeping system that logs all vouchers issued and paid by a business, detailing payments to suppliers and services.