Finance

Assume that a firm’s earnings per share (EPS) are expected to be $1.35

Assume that a firm’s earnings per share (EPS) are expected to be $1.35 next year and that analysts have determined that an appropriate forward-looking multiple is 20 times the projected earnings. What should the stock price be? A) $11.35 B) $20.00 C) $27.00 D) $28.75     ANSWER C Explanation: C) Price = EPS * […]

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Date: September 19th, 2020

Investment banking firms offer to facilitate the sale of securities to

Investment banking firms offer to facilitate the sale of securities to the public in a variety of ways. Which of the following methods guarantees the corporation with a pre-determined price for the securities? A) an underwriting B) a commission basis C) a competitive bid D) a best efforts basis     ANSWER A

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Date: September 19th, 2020

Mark purchased a boat owners package policy. While using his boat, he

Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the pier fell and was severely injured. Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act? A) physical damage coverage B) liability coverage […]

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Date: September 19th, 2020

Pinnacle Financial Management projects that earnings per share for Val

Pinnacle Financial Management projects that earnings per share for Valley Imports Inc. will increase from the current $1.75 per share to $2.00 next year. If Pinnacle recommends a P/E ratio of 12.5 for Valley Imports, what is the recommended forward looking price for the firm? A) $21.88 per share B) $25.00 per share C) $23.44 […]

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Date: September 19th, 2020

Jan showed the following financial items in 2007 and 2008: 2007 2008

Jan showed the following financial items in 2007 and 2008: 2007 2008 Salary 22,000 20,000 Payroll taxes 4,000 3,500 Other inflexible expenses 11,000 11,000 Flexible expenses 6,000 5,300 In relation to 2007’s savings, Jan’s savings in 2008 A) decreased by $800. B) decreased by $200. C) increased by $200. D) increased by $800.     […]

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Date: September 19th, 2020