The Price-earnings ratio of Aberdeen Wholesale Company equals to 14.29.
<h3>What is a P/E ratio?</h3>
Its means the Price-earnings ratio which is used to value a companies by comparing the company's share price to its earnings per share.
<u>Given data</u>
Market capitalization rate = 10%
Expected ROE = 12%
Expected EPS = $5
Plowback ratio is 60%
<h3>What is the Dividend payout ratio?</h3>
= 1 - 0.6
= 0.4
<h3>What is the Expected dividend?</h3>
= 0.4 × $5
= $2
<h3>What is the Growth rate?</h3>
= 0.6 * 12%
= 7.2%
<h3>What is the Firm Value?</h3>
= $2 / (0.10 - 0.072)
= $2 / 0.028
= $71.43
<h3>What is the P/E ratio?</h3>
= $71.43 / $5
= 14.286
= 14.29
Hence, the Price-earnings ratio of Aberdeen Wholesale Company equals to 12.5.
Therefore, the Option D is correct.
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The total amount of joint cost is $32,800
Explanation:
Cost to be allocated ÷ Allocation base = Allocation rate
($40,000 + $44,000) ÷ (4,000 platters + 1,000 cups)
= $16.80 per unit
Allocation rate x Weight of the base = amount to allocate
$16.80 x 4,000 units = $67,200 to platters
$16.80 x 1,000 units = $16,800 to cups
Platters Cups
Sales $ 100,000 $12,000
Allocated joint cost (67,200) (16,800)
Further processing cost 0 (2,000)
Income $32,800 $(6,800)
Answer:
Option D
Explanation:
Option D are all the requirements needed for to process the eligibility of Lisa for aoc and applying for aoc.
Answer:
Should be disclosed in the notes accompanying the financial statements
Explanation:
You have to report contingent liabilities that are reasonably possible to occur, but since they haven’t occurred, you don’t record or pay them until they actually occur. You report them in the notes only.