The Merry Co. has current annual sales of$350,000 and a net profit margin of690 Sales are expected to increase by 5% annually while the profit margin is expected to remain constant. What is the projected after-tax earnings for two years from now? 63. A. $19,294 B. $22,050 C. $23,100 D. $23,153 Markhem Enterprises is expected to earn $1.34 per share this year. The company has a dividend payout ratio of40% and a P/E ratio of 18, what should one share of common stock in Markhem Enterprises be selling for in the market? 64. A. $9.65 B. $14.47 C. $24.12 D. $33.77 The common stock of Jennifer's Furniture Outlet is currently selling at $32.60 a share. The company adheres to a 60% dividend payout ratio and has a P/E ratio of 19There are 21,000 shares of stock outstanding. What is the amount of the annual net income for the firm? 65. A. $21.619 B. $36,032 C. $48,327 D. $60,053 Risk is brought into the stock valuation process through the required rate of return. True or There is no assurance that the actual rate of return on an asset will be similar to the projected rate The greater the perceived risk of an asset, the lower the expected rate of return. True or False? The required rate of return denotes the maximum rate of return an investor should expect. True False? 66. of return. True or False? 67 68 or False? 69