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Sunflower Corporation has 1 0 0 , 0 0 0 shares outstanding that currently trade at $ 5 . 0 0 per share. The company

Sunflower Corporation has 100,000 shares outstanding that currently trade at $5.00 per share. The company has just posted their income statement for the last 12 months. The firm posted net income of $500,000 and plans on paying out 30% of earnings as dividends. The firm currently has $80,000 in outstanding debt (interest bearing) and $40,000 in cash. Which statement is correct regarding Sunflower Corporation?
Question 2 options:
The firm has an enterprise value of $500,000, and also has earnings per share of $6.00.
None of the stated answers are correct.
The firm has an enterprise value of $540,000, and added $250,000 to retained earnings in the last 12 months.
The firm has earnings per share of $5.00, and added $350,000 to retained earnings in the last 12 months.
The firm has a P/E ratio of 1.43 and an enterprise value of $500,000.

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