Currently, Southern Foods has sales of $1.32 million, net profit of $521,400, and 125,000 shares of stock outstanding. The sales and net profit are each expected to grow by 6 percent annually. The historical P/S ratio is 7.8. What is the expected price of this stock one year from now?
A)$32.54
B)$34.49
C)$82.37
D)$85.15
E)$87.31

Question

Quizplus · Accepted Answer

The Answer of Currently, Southern Foods has sales of $1.32 million, net profit of $521,400, and 125,000 shares of stock outstanding. The sales and net profit are each expected to grow by 6 percent annually. The historical P/S ratio is 7.8. What is the expected price of this stock one year from now?
A)$32.54
B)$34.49
C)$82.37
D)$85.15
E)$87.31

Currently, Southern Foods Has Sales of $1