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2 years ago

Dividing a stock's current price per share by the issuing company's earnings per share results in

2 answers:

5 0

Price per share / Earnings per share = Price-Earnings Ratio
Price-Earnings Ratio shows how much the investors are willing to pay per earnings for the company. For example, if the P/E Ratio is 15 suggests that the investors of a stock is willing to pay $15 per $1 of earnings of the company may produce over the year.

Morgarella [4.7K]2 years ago

4 0

<span>Dividing a stock’s current price per share by the issuing company’s earnings per share results in the price-earnings ratio. Price-earnings ratio = price per share / earnings per share. The price per share is how much each share of stock costs to purchase. The earnings per share is how a company can see if they are profitable now and in the future. </span>

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Peggy Grey's Cookies has net income of $400. The firm pays out 30 percent of the net income to its shareholders as dividends. Du

andreev551 [17]

Answer:

Cash flow = $35

Explanation:

Cash flow= Payout ratio*net income-price of stock= 0.30*400-85=35

3 0

2 years ago

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

icang [17]

Answer:

A) NPV= - $428,888.89 B) Company would break Even if g = 5.68%

Explanation:

Hi, we have to bring to present value all the inflows and outflows of cash, this is the formula to use and the math of it.

$NPV=-Invesment+\frac{CashFlowYr1}{(return-growth)}$

$NPV=-1440000+\frac{91000}{(0.12-0.03)} = -428888.89$

The question says that "at what constant growth rate would the company just break even..." and well, a NPV=0 is not precisely break even, actually, it means that the company is obtaining exactly what is asking for any investment, but let´s assume that the question was, what should the growth rate be for the company to accept this project?. So we have to solve the first equation for "g", that is:

$g=\frac{(Invesment*return-CashFlowYr1)}{Invesment} =\frac{(1440000*0.12-91000)}{1440000} =0.0568$

So the constant growth rate has to be at least 5.68% for the company to accept this project (NPV=0)

Best of luck

6 0

3 years ago

The income received by a country's people from all sources in a given time period

AfilCa [17]

The correct answer is personal income.

A country’s personal income is the amount of income received by all of the country’s people in a given time period.

7 0

2 years ago

_____ media are specifically designed to help bring customers eyeball to eyeball with the product--often at the point of sale or

cupoosta [38]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Exhibitive.

b) Transit.

c) Direct mail.

d) Outdoor.

e) Print.

And the correct answer is the option A: Exhibitive.

Explanation:

To begin with, the term known as <em>"Exhibitive Media"</em>, in the field of marketing and business, refers to the strategy used by the companies whose approach is in the point of sale marketing. This type of strategy focus on exhibiting the product to the costumer the closer as possible so it will generate an impulse on the client of buying the product without having it thought before seeing the product. A very common example of this strategy is the situation in where the supermarkets fill their lines to the cashier with other retails that have product that are attractive at first sight.

6 0

2 years ago

With its current levels of input use, a firm's MRTS is 1/3 (when capital is on the vertical axis and labor is on the horizontal

bixtya [17]

Answer: A. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant).

Explanation:

The Marginal Rate of Technical Substitution(MRTS) is calculated as follows:

= Marginal product of labor / Marginal product of capital

= 1 / 3

Marginal product of labor = 1

Marginal product of capital = 3

This means that if one unit of labor is used, it produces 1 unit of output.

If one unit of capital is used however, it produces 3 units of output.

If a firm therefore used one unit of capital and kept labor constant, it could produce 3 units out output.

4 0

2 years ago