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Schach [20]
1 year ago
12

a company announces that it is buying back 10% of its common shares in the open market. the company currently pays no dividends

to common shareholders. assuming that net income and the share price remain the same as before, what will be the impact of this buy-back on the company's p/e ratio?
Business
1 answer:
Marina CMI [18]1 year ago
7 0

P/E choice decrease

When companies buy rear their own stock, it decreases the numbers of claims outstanding. Earnings per share are computed as net income divided by number of shares great. If the number of shares outstanding declines while net revenue stays the same, EPS will increase. If EPS increases while the stock price stays the identical, the price/earnings ratio (P/E) will fall.

<h3>What are stock earnings?</h3>

Earnings refer to a company's earnings in a given quarter or fiscal year. Earnings are a key figure used to select a stock's value. A company's profits are used in many standard ratios. Payments have a big influence on stock price, and as a consequence, the numbers are subject to potential manipulation.

To learn more about Earning, refer

brainly.com/question/26215194

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When making a large purchase, you should avoid everything except _______________________
vivado [14]

Answer:

being robbed

Explanation:

dont laugh i know you are       lol

6 0
3 years ago
Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th
lara [203]

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

6 0
3 years ago
Describe your motivation for becoming a licensed cosmetologist/manicurist.<br><br>please help ​
GrogVix [38]

There are several facets to the beauty industry that may be explored, including hair, cosmetics, and fashion, and one of those facets is cosmetology.

It's pleasant and gratifying to be someone who helps other people look their best. A profession as a cosmetologist might be ideal for you if you take pleasure in doing manual labor and consider yourself to be someone who gets along well with others. This is further explained below.

<h3>What is a cosmetologist/manicurist.?</h3>

Generally, Manicurists are certified cosmetologists who focus only on providing manicures. You may get a gel manicure or French tips thanks to their skill with design and application. Moreover, they are well-versed in the care and treatment of nails.

In conclusion, You don't need an obsession with hair, cosmetics, and fashion to succeed in the cosmetology industry. Helping others shine visually is a rewarding and entertaining activity. Become a cosmetologist if you are outgoing, creative, and love using your hands.

Read more about cosmetologists/manicurists.

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6 0
1 year ago
Freya Co. has two patents that have allegedly been infringed by competitors. After investigation, legal counsel informed Freya t
matrenka [14]

Answer:

Freya needs to expense costs for Patent A34 and capitalize costs for Patent B19.

Explanation:

Based on the scenario being described it can be said that Freya needs to expense costs for Patent A34 and capitalize costs for Patent B19. That is because a successful defense of a patent needs to be capitalized and amortized since you can now monetize and recover the costs incurred as well as make a profit off of the patent. On the other hand, unsuccessful defense of a patent needs to be expensed as incurred since that patent cannot be used to make money and recover costs.

7 0
3 years ago
Why is the expert testimony of a forensic scientist so convincing?
salantis [7]
A forensic Scientist has credentials!
4 0
3 years ago
Read 2 more answers
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