You Are Provided with the Following Information About Javier Corporation

question 46

Multiple Choice

You are provided with the following information about Javier Corporation. Sales for the year 2009 were $500,000, the Net Profit Margin (NPM) was 15%. Analysts project sales to grow by 12% next year (that is 2010) . However, because of more competition, the NPM is expected to decline by 10% for the year 2009. The expected P/E multiple for the year 2010 is 22. The total number of shares outstanding is 20,000. Use the earnings multiplier model to calculate the expected price for Javier Corporation in the year 2010.

• A) $74.25
• B) $61.6
• C) $82.5
• D) $83.16
• E) $101.64

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Definitions:

Menopause

The period in a person's life, typically occurring between ages 45 and 55, when menstrual cycles cease due to the natural decline in ovarian function.

STIs

Sexually Transmitted Infections are infections that are primarily spread through sexual contact, including bacteria, viruses, and parasites.

Permanent Infertility

An irreversible condition where an individual or couple is physically unable to conceive a child naturally.