Answer:
$5.952
Explanation:
For the computation of expected price of the competitor's stock first we need to find out the P/E ratio of a firm which is shown below:-
P/E ratio of a firm = Stock price ÷ Earning per share
= $14.26 ÷ $1.15
= $12.4
Price of competitor's stock = P/E ratio of a firm × Earning per share
= $12.4 × $0.48
= $5.952
Therefore for computing the expected price of the competitor's stock we simply applied the above formula.
Based on the graph that shows the change in the market for bicycles, the statement that explains the graph is The demand for bicycles increased due to news about the health benefits of exercise. The market price & quantity increased.
<h3>Which statement explains the supply and demand graph?</h3>
The question is not complete as the graph is not given. However, an answer can be formulated based on the laws of demand and supply.
The most likely option to be true is that the demand for bicycles increased due to news about its health benefits and then this led to the market price and quantity increasing.
This is because the increased demand for the bicycles would have drove the prices up. This would then have inspired suppliers to produce more bicycles thereby increasing bicycle quantity as well.
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If its true or false its true
Answer:
increase yields and lower debt prices
Explanation:
In a given situation like this, it implies that the Federal Reserve trading desk is temporarily selling government securities to the dealers, for the purpose of sapping them of cash. This reduces free reserves which can be given out as loans by the banks. In return, it results in a raise market interest, given that the funds are not readily available. Hence, when the interest rates rise, debt prices will fall. This type of action is taken if the government believes the economy is growing too faster than desired.
Therefore, the correct answer is "increase yields and lower debt prices"
