You Are Provided with the Following Information About Javier Corporation

Multiple Choice

You are provided with the following information about Javier Corporation. Sales for the year 2010 were $500,000, and the Net Profit Margin (NPM) was 15 percent. Analysts project sales to grow by 12 percent next year (that is 2011) . However, because of more competition, the NPM is expected to decline by 10 percent for the year 2010. The expected P/E multiple for the year 2011 is 22. The total number of shares outstanding is 20,000. Use the earnings multiplier model to calculate the expected price for Javier Corporation in the year 2011.

A) $74.25
B) $61.6
C) $82.5
D) $83.16
E) $101.64