Answer:
B. The higher the price-earnings ratio, the more investors are paying for earnings.
Explanation:
When analyzing a price-earnings ratio the higher the price-earnings ratio, the more investors are paying for earnings.
Price-earning ratio: It is a ratio of stock´s price per share to the company´s earning per share. It is a measure the share price in relative to the total earning by the company per share. Higher price earning ratio shows the higher demand for the share in the market. The investor wants to invest in the company´s share even if they have to pay a higher price per share as they anticipate better earning per share in the future. This ratio also helps in evaluating the performance of the company before investing.
Formula; Price-earning ratio= 
Answer:
$42,500 payments at the beginning of each of the next twenty-five years. Assuming Wither Spoon Company's borrowing costs are 8% per annum
Explanation:
Assuming Wither Spoon Company's borrowing costs are 8% per annum
th e option that is least costly to the company is Location C because it only requires $42,500 payments at the beginning of each of the next twenty-five years.
Hence Location A which may be purchased immediately for $500,000 cash and Location B which may be acquired with an immediate down payment of $100,000 and annual payments of $39,900 at the end of each of the next twenty years are not the best option for the company to choose from which therefore makes LOCATION C the best option for Wither Spoon Company because it save cost as as well the least costly to the company.
Answer:
Explanation:
The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2017 as the base year.
Year 2016 2017
Price Quantity Price Quantity
Ice Cream $7.00 600 $3.00 400
Blue Jeans $70.00 20 $20.00 90
Laptops $300.00 5 $300.00 5
2016 nominal GDP = $_(7 x 600) + (70 x 20) + (300 x 5)_ = $7,100
2017 nominal GDP = $_(3 x 400)+(20 x 90) + (300 x 5)_ = $4,500
2016 real GDP = $__(7100-4500)/ 4500)) / change in ice cream price of 50%+ change in blue jean price of (70-20/20) 250%_______
= 0.57/3 = 0.19% growth. Technically the economy was better in 2016 than in 2017.
2017 real GDP = will be same as nominal, hence no growth since this is the base year
Answer:
The difference in human capital explains $7,863 of the income per worker gap while the difference in physical capital explains $20,181 of the income per worker gap.
Explanation:
Human capital refers to the skills, knowledge, and efforts of the people in producing goods and services. It is also known simply as labor. Physical capital refers to the "man-made" goods that assist in production, including machinery, equipment, and technological items such as computers.
In the given scenario, the income per worker in the United States is $82,359 - $54,315 = $28,044 more than the income per worker in South Korea. This is explained by differences in both the level of technology (i.e. physical capital) and the capability of workers (i.e. human capital).
We are informed that the income per worker in South Korea would be $74,496 if it had the same level of technology as the United States. This means that $74,496 - $54,315 = $20,181 of the income per worker gap between the two countries is explained by differences in physical capital. Hence the remaining difference of $28,044 - $20,181 = $7,863 is explained by differences in human capital between the two countries.
Answer:
the average annual economic growth rate in Taiwan from 1961 to 1981 was 41.42%
Explanation:
Hi, we need to use the following formula.
Where:
FV = GDP in 1981 ($1,000)
PV = GDP in 1961 ($500)
r = growth rate
t = years from 1981 to 1961 (20 years)
So, it should look like this:
Now, we solve for "r"
![\sqrt[20]{2} -1=r](https://tex.z-dn.net/?f=%5Csqrt%5B20%5D%7B2%7D%20-1%3Dr)
So, the growth rate of Taiwan´s GDP is 41.42%
Best of luck.
