Approximate value of investment problem, Accounting Basics

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Approximate value of investment problem

LaLa Company currently has 100,000 shares of common stock outstanding and a price-earnings ratio of seven. Net income for the recently ended year is $375,000. LaLa board of directors declared a 15-for-2 stock split. Sunshine owned 100 shares of LaLa company before the split. What is the approximate value of Sunshine's investment in LaLa immediately after the split:

a. $ 26

b. $ 350

c. $2,625

d. $5,250

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Accounting Basics: Approximate value of investment problem

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Recent Questions Asked Accounting Basics

Q : What will your annual loan payment be

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Approximate value of investment problem

Reference No:- TGS047646

Recent Questions Asked Accounting Basics

Q : What will your annual loan payment be

Q : What is the value at date

Q : Problem regarding roi calculation

Q : How many payments will you have made

Q : Approximate value of investment problem

Q : What amount of costs should be expensed

Q : Producing financial statements

Q : Determine the balance sheet presentation

Q : Consolidated balance to be reported for equipment

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