What formula below is correct for valuing a company using the price/earnings ratio method?A. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average net income for the past 5 years. B. Divide the market price of the firm's common stock by the firm's current ratio and multiply this number by the firm's average net income for the past 5 years. C. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average revenue for the past 5 years. D. Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average sales for the past 5 years. E. Divide the market price of the firm's common stock by the firm's debt-to-equity ratio and multiply this number by the firm's average net income for the past 5 years.

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?