The Target Company Has Sales of $2 Million,earnings of $1

question 5

Multiple Choice

The target company has sales of $2 million,earnings of $1 million,and cash flows to equity of $1.1 million.The industry P/E ratio is 16.5.What is the valuation of the target company?

• A) $16.5 million
• B) $33 million
• C) $18.15 million
• D) $10 million

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Definitions:

Consent

The explicit agreement to participate in an activity or to allow something to happen, often requiring awareness and understanding of what is being agreed upon.

Mandated Reporters

Individuals required by law to report suspected cases of abuse or neglect to designated authorities.

State Laws

Laws that are established and enforced by the government of a specific state, as opposed to federal laws, which govern the country as a whole.

Duty To Warn

Duty to warn is a legal concept that obligates individuals, such as healthcare providers or therapists, to inform others if a specific individual poses a danger to themselves or others.