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Unformatted text preview: 40% Year-end stock price $30.60 What is the firm's total assets turnover? A) 1.40 B) 1.20 C) 1.30 D) 1.50 E) 1.10 Points Earned: 5.0/5.0 Correct Answer(s): D 19. Reynolds Corp's total assets at the end of last year were $300,000 and its net income after taxes was $25,000. What was its return on total assets? A) 8.51% B) 8.33% C) 8.87% D) 8.69% E) 8.15% Points Earned: 5.0/5.0 Correct Answer(s): B 20. The Charleston Company is a relatively small, privately owned firm. Last year the company had net income of $15,000 and 10,000 shares were outstanding. The owners were trying to determine the equilibrium market value for the stock prior to taking the company public. A similar firm that is publicly traded had a price/earnings ratio (P/E) of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock. A) $ 1.50 B) $ 2.50 C) $ 5.00 D) $10.00 E) $ 7.50 Points Earned: 5.0/5.0 Correct Answer(s): E...
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