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    Benkart Corporation has $5,000,000 in sales, $800,000 in net income, $2,000,000 in total assets, and 100,000 shares of common stock outstanding. Given its P/E ratio is 12, what is the company's current stock price? The stock price is $240 per share.

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    Benkart Corporation has $5,000,000 in sales, $800,000 in net income, $2,000,000 in total assets, and 100,000 shares of common stock outstanding. Given its P/E ratio is 12, what is the company's current stock price? The stock price is $240 per share.

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    Benkart Corporation has $5,000,000 in sales, $800,000 in net income, $2,000,000 in total assets, and 100,000 shares of common stock outstanding. Given its P/E ratio is 12, what is the company's current stock price? The stock price is $240 per share.

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    56 views3 pages

    Data 5

    Uploaded by

    Meghna Cm
    Benkart Corporation has $5,000,000 in sales, $800,000 in net income, $2,000,000 in total assets, and 100,000 shares of common stock outstanding. Given its P/E ratio is 12, what is the company's current stock price? The stock price is $240 per share.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    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?

    $360 per share

    $96 per share

    $240 per share

    $60 per share

    Please refer to Table 4-1 for the following questions.

    Table 4-1

     Stewart Company 

     Balance Sheet 

    Assets:

    Cash and marketable securities $600,000 

    Accounts receivable 900,000 

    Inventories   1,500,000 

    Prepaid expenses 75,000 

    Total current assets $3,075,000 

    Fixed assets  8,000,000 

    Less: accum. depr. -2,075,000

    Net fixed assets $5,925,000 

    Total assets $9,000,000 

    Liabilities:

    Accounts payable $800,000 

    Notes payable   700,000 


    Accrued taxes 50,000 

    Total current liabilities $1,550,000 

    Long-term debt 2,500,000 

    Owner's equity (1 million shares of common stock outstanding) 4,950,000 

    Total liabilities and owner's equity $9,000,000 

    Net sales (all credit) $10,000,000 

    Less: Cost of goods sold -3,000,000

    Selling and administrative expense -2,000,000

    Depreciation expense -250,000

    Interest expense -200,000

    Earnings before taxes 4,550,000 

    Income taxes -1,820,000

    Net income $2,730,000 

    Based on the information in Table 4-1, the accounts receivable turnover is

    11.11.

    9.50.

    10.00.

    8.11.

    All of the following measure liquidity EXCEPT

    inventory turnover.

    acid-test ratio.

    current ratio.

    operating return on assets.


    The current ratio of a firm would equal its quick ratio whenever

    the firm's inventory is equal to its other current assets.

    the firm's current ratio is equal to one.

    the firm's inventory is equal to its current liabilities.

    the firm has no inventory.

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