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Abacus, Inc. provides accounting services to a wide variety of customers, most of whom have had a business association with Abacus for more than five years. These long- standing relationships give Abacus a unique ability to provide comprehensive accounting services for its customers-no other firm could provide the same services because they lack data about past performance. Abacus' demand and marginal revenue curves are:
P =10,000-10Q M R = 10, 000 - 20Q
Abacus' marginal cost of service is:
MC = 5Q
The Stock of VIC Corporation is trading at $39.63. The price-earnings ratio is 16 times earnings. The earnings per share for VIC Corporation is... A)$2.84 B)$2.48 C)$4.96 D)$6.34
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