ABC Has a Net Profit Margin of 3

question 71

Multiple Choice

ABC has a net profit margin of 3.3 percent on Sales of $10,000,000.The firm has 50,000 shares outstanding.If the firm's P/E is 19 times,how much is the stock selling for?

• A) $41.72
• B) $34.96
• C) $125.40
• D) $99.16

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Definitions:

Calculate

To determine something mathematically, often by using a specific formula or procedure.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant mean rate and independently of the time since the last event.

Nuclear Power Plant

A facility that generates electricity by using heat from nuclear reactions.

Probability

A measure of the likelihood that an event will occur, often represented as a number between 0 and 1.