Benkart Corporation has sales of $5,000,000, net income of $800,000, t

Benkart Corporation has sales of $5,000,000, net income of $800,000, total assets of $2,000,000, and
100,000 shares of common stock outstanding. If Benkart’s P/E ratio is 12, what is the company’s
current stock price?

A) $360 per share B) $240 per share C) $96 per share D) $60 per share

ANSWER

C