A Company Has Net Income of $3,000,000

question 37

Multiple Choice

A company has net income of $3,000,000.It has 600,000 weighted-average common shares outstanding and a price-earnings ratio of 17.What is the market value per share of this company's stock?

• A)$5
• B)$85
• C)$176,470.58
• D)$84.90
• E)$17

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Definitions:

Marketing Strategy

The overall game plan of a company for reaching prospective consumers and turning them into customers of the products or services the business provides.

Financial Ratio

A quantitative measure that compares two financial variables from a company's financial statements, often used to assess its financial health.

Marketers

Professionals or organizations involved in the activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Activity Ratio

A financial metric used to measure a company's ability to convert different accounts within its balance sheets into cash or sales.