Use the Figure for the Question(s) Below

question 32

Multiple Choice

Use the figure for the question(s) below:
-On a particular date, the above information concerning Office Depot, Incorporated, was given on Google Finance. Its competitor, Staples Incorporated, had a stock price of $24.33. Which of the following is closest to the EPS of Staples Incorporated if it is estimated using valuation multiples based on price-earnings ratios?

• A) $1.58
• B) $1.84
• C) $2.63
• D) $14.15

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Definitions:

Inventory Error

Mistakes in counting or valuing inventory that can result in incorrect financial statements.

Discrepancy

A difference or inconsistency found when comparing two or more items, figures, or documents.

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

Major Inventory

Major Inventory refers to the significant stock of goods a company holds for the purpose of sale or production in its normal business operations.