The Current Market Price Per Share Is $32

question 6

Multiple Choice

The current market price per share is $32.Earnings per share for income from continuing operations is $10.00 per share.Earnings per share for net income is $5.00 per share.The investment capitalization rate is 10%.What is the estimated value of the stock per share?

• A)$10.00
• B)$50.00
• C)$100.00
• D)$320.00

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Definitions:

Permanent Fund

A fund established by a government or organization meant to provide a permanent source of income.

Endowed Gift

A donation made to an institution with the stipulation that the principal is kept intact and only the investment income is used.

Current Financial Resources

Assets that are expected to be used or turned into cash within one year, providing insight into a company's short-term financial health.

Expenditures

Outflows of money or other valuables, typically categorized as either capital expenditures (CapEx) or operating expenses (OpEx).