Answer:
a. Increase
Explanation:
The price earnings ratio is calculated by dividing the market value per share by the earning per share. This means that the price of the share is in the numerator and the earnings per share is in the denominator. If the denominator increases the ratio will decrease and if the numerator increases the ratio will increase. In this case the price of the stock which is the numerator increases from 15 to 18 whereas the earnings which is the denominator remains the same, this means that the price earnings ratio will increase. We can see this example numerically
We know the price of the stock was $15, lets assume the earnings were $1. So before the price change the earnings per share ratio would be 15/1= 15.
When price increases to $18 and earnings remain the same the new price earnings ratio will be 18/1=18. This proves that when earnings are constant and price per share increases the price earning ratio increases.
Going beyond the minimum requirements set by the Food and Drug Administration; they have personal responsibility for ethical behavior.This is most closely relates to the business ethics programs.
<u>Explanation:</u>
- Business ethics is said to be art and science which helps in maintaining a harmonious relationship with the society and the business conduct of social responsibility.
- These business ideas generally emphasize general business ideas to business behavior.
- It is applicable to all business conduct and to the entire organization along with the individual's conduct.
Answer:
11.6%
Explanation:
A firm total market value is $10 million
Its debt has a market value of $4 million
The before-tax cost of debt is 10%
= 10/100
= 0.1
The cost of equity is 15%
= 15/100
= 0.15
The tax rate is 35%
= 35/100
= 0.35
Therefore, the after-tax weighted average cost of capital can be calculated as follows
WACC= 0.4(0.10)(1-0.35) + 0.6(0.15)
= 0.04(0.65) + 0.09
= 0.026 + 0.09
= 0.116×100
= 11.6%
Hence the after-tax weighted average cost of capital is 11.6%
The method used to calculate direct materials on the schedule of cost of goods manufactured is this: add purchases to beginning raw materials inventory and subtract <u>Cost of the </u><u>ending </u><u>raw materials. </u>
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<h3>How to calculate direct materials</h3>
The formula used to calculate direct materials on the schedule of cost of goods manufactured is this: Beginning raw materials + Purchases - Cost of the ending raw materials.
This figure is important because it can be used to calculate the total manufacturing cost incurred during production.
Learn more about direct materials here:
brainly.com/question/26245657
The answer is false because it would be a 4 wheel vehicle
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