A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
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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<em>brainly.com/question/14690388</em>
Henry Ford was an inventor during the Industrial Revolution, who had ideas that many workers followed. In addition to inventing the Model T and revolutionizing the way Americans transported themselves, he also contributed by creating the assembly line. To mass produce a certain item in the most efficient manner, each worker specialized in making one part, and then would pass it along to the next worker, who would be specialized in making the next part, and so on and so forth.
Answer:
The bond's issue costs is $364000
Explanation:
The issue costs of the debt financing is listed below:
Payment for printing and engraving $26000
Legal fees $100000
Professional fees $8000
Underwriter's spread <u> $230000</u>
Total issue costs <u> $364000</u>
All the above highlighted costs are relevant to the bond's issuance ,hence they are added up in arriving at the bond's issuance costs.
The spread between the payment by the underwriter and the retail price is essential so as to ensure the number of bonds planned can be sold quickly.
It is more like the payment to the underwriter to underwrite and ensure everything is sold.
Answer:
Total Per Unit
Materials $155,200 $96
Direct labor $57,600 $48
Other costs varying with output $34,800 $29
<u>Fixed costs $540,000 $450 </u>
Total costs $747,600 $623
Since South is going to increase its production by 300 more units to be able to sell them to North, that would change the average fixed cost per unit = $540,000 / 1,500 units = $360 per unit.
Therefore the total cost per unit = $96 + $48 + $29 + $360 = $533 (instead of $623).
Since South charges its sales to North a 20% margin, the selling price per unit should = $533 x 120% = $639.60 and the total invoice for the 300 units = $639.60 per unit x 300 units = $191,880
