A firm's stock price most closely reflects which of the following?
A) Current interest rates
B) Expected future cash flows of the firm
C) The amount of debt held by the firm
D) None of the above
Answer: B
Business
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A company purchased new computers at a cost of $14,000 on September 30, 2010. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the year ended December 31, 2010?
a. $250 b. $750 c. $875 d. $1,000 e. $3,000
Business
If a stock's P/E ratio is 13.4 a ta time when earnings are 4$ per year, what is the stock's current price?
a. $3.35 b. $13.40 c. $53.60 d. $35.32
Business