A Firm Has 5,000 Shares of Stock Outstanding,sales of $6,000,net

question 107

Multiple Choice

A firm has 5,000 shares of stock outstanding,sales of $6,000,net income of $800,a price-ratio of 10,and a book value per share of $.50. What is the market-to-book ratio?

• A) 1.6
• B) 2.4
• C) 3.0
• D) 3.2
• E) 3.6

---

Definitions:

Misapprehension

A misunderstanding or incorrect interpretation of a situation, concept, or fact.

Exploitation

The act of unfairly using someone or something for one's own advantage, often by capitalizing on their vulnerabilities.

Valid Consent

The informed agreement given by a person based on an understanding of a situation and its potential consequences, without any form of coercion.

Deliberate

Done consciously and intentionally, often after careful thought.