​Scenario: Pettijohn Inc -Refer to Scenario: Pettijohn Inc

question 64

Multiple Choice

​Scenario: Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.​​ $\begin{array}{lr}\text { Income Statement (Millions of } \$ \text { ) } & 2007 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 54,978.0 \\\text { Depreciation } & \$ 1,029.0 \\\text { Earnings before interest and taxes (EBIT) } & \$ 2,793.0 \\\text { Less interest } & 1,050.0 \\\text { Earnings before taxes (EBT) } & \$ 1,743.0 \\\text { Taxes } & \$ 610.1 \\\text { Net income } & \$ 1,133.0 \\\text { Other data: } & \\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & \$ 509.83 \\\text { Interest rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 35 \% \\\text { Year-end stock price } & \$ 77.69\end{array}$
-Refer to Scenario: Pettijohn Inc.What is the firm's market-to-book ratio?

• A)0.66
• B)0.78
• C)0.92
• D)1.08

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Definitions:

Nitrogen Dioxide

A toxic, reddish-brown gas that is part of the nitrogen oxides group, contributing to air pollution and respiratory issues.

Organic Compounds

Chemical compounds containing carbon atoms bonded to hydrogen atoms, along with other elements, widely found in living organisms.

Secondary Pollutants

Pollutants not emitted directly into the air, but formed when primary pollutants react or interact in the atmosphere.

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denotes periods or conditions of elevated temperature in the environment, which may have various effects on ecosystems, human health, and climate.