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Lori's Lotion Company reports several earnings numbers on its current-year income statement (parentheses indicate a loss): ?(Click the icon to view the data.) Suppose you
Lori's Lotion Company reports several earnings numbers on its current-year income statement (parentheses indicate a loss): ?(Click the icon to view the data.) Suppose you are evaluating Lon's Lotion Company stock as an investment. You require an 8% rate of return on investments, so you capitalize Lori's earnings at 8%. How much are you willing to pay for all of Lori's stock? OA. $387,500 OB. $775,000 O C. $1,437,500 O D. $275,000 Data Table Gross profit... . . . . . . . . . . . . .$ 115,000 Income from continuing operations. . . . $31,000 Net income ncome before income tax 22,000 Discontinued operations 62,000 (9,000) Print Done
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