What is the space between the buyer’s reservation price and the seller’s reservation price called?
1 answer:
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Answer:
(C) The Firm's stock is overvalued and one should consider selling the stock
Explanation:
Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.
Price Earnings Ratio =
A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.
This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.
Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.
Answer:
(A) 352,410
(B) 328,910
(C) 474,120
(D) 461,770
(E) 165,000
(F) 175,000
Explanation:
1.- WIP, August 1st: $ 19,660 $ 41,650 (e)
2.- Cost added $ 332,750 (c) $ 1,075,000
3.- Subtotal (a) $ 515,770 $ 1,240,000
4.- WIP, August 31th $ 23,500 $ 54,000 (f)
5.- COGM (b) (d) $1,068,000
The identity to solve for this is as follow:
<u>The third row is the sum of the left side of the of the equation.</u>
beginning WIP + cost added.
(a) 332,750 + 19,660 = 352,410
(c) 515,770 - 41,650 = 474,120
(e) 1,240,000 - 1,075,000 = 165,000
COMG will be third row less fourth row
the ending WIP subtracted from the left side
(b) 352,410 - 23,500 = 328,910
(d) 515,770 - 54,000 = 461,770
(f) 1,240,000 - 1,068,000 = 175,000