Reference no: EM132753897

Problem 1: 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?

Select one:

a. $60 per share
b. $96 per share
c. $240 per share
d. $360 per share

Problem 2: Given an accounts receivable turnover of 10 and annual credit sales of $900,000, the average collection period is

Select one:

a. 18.25 days.
b. 36.50 days.
c. 90 days.
d. 40.56 days.