1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natita [175]
3 years ago
5

A low P/E for a stock indicates that:

Business
1 answer:
pishuonlain [190]3 years ago
6 0

Answer:

(A). People may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.

Explanation:

Price Earnings ratio of a company represents market price per share of a company's stock in relation to it's earnings per share.

Price Earnings ratio(PER) is given by the following formula:

PER = \frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}

A lower P/E Ratio indicates that a company's market price of a share is lower relative to it's earnings. This means the company's stock is undervalued.

It can also mean that the company's earnings have increased which in turn has increased it's earnings per share.  

Investors in general expect lower earnings in future for the stock of a company with low P/E Ratio.

You might be interested in
How can producers maximize their profit?
Alina [70]

Answer:

the best possible answer is keep the marginal costs below marginal revenue.

7 0
3 years ago
An audit of historical financial statements most commonly includes the Group of answer choices income statement, the statement o
Advocard [28]

Answer:

balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

6 0
3 years ago
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and op
stiv31 [10]

Answer:

(a)

1. Kalispell State Bank

2. Glacier Boutique

3. Big Sky Sports

4. Kalispell State Bank

5. Big Sky Sports

6. Big Sky Sports

7. None of the above

8. Glacier Boutique

9. None of the above

10. Big Sky Sports

(b) Business transactions refers to the transactions that are related to only business, such as purchase of land, machinery, goods for business purposes. Any type of personal transaction is not included in business transaction.

6 0
3 years ago
What is a distribution channel?
Ilya [14]

Answer:

Medium of communication

Explanation:

  • Distribution is one of the four main elements of the marketing mix and its a process of making the predictor services available to the costumers and can be done directory by a producer or service provider that has indirect channels of the distributions
  • The decision about the distribution are taken by the companies vision and the mission and the goals of the organization that depends in the strategic planning.
5 0
3 years ago
At the beginning of November, Watson Industries has a cash balance of $3,461,000. They have expected cash receipts of $712,000 a
Ahat [919]

Answer:

$224,000

Explanation:

The computation of the borrowed cash amount is shown below:

= Cash balance + expected cash receipts - expected cash disbursements - minimum monthly balance

= $3,461,000 + $712,000 - $1,397,000 - $3,000,000

= $224,000

Simply we add the expected cash receipts and less the expected cash disbursements and minimum monthly balance to the cash balance so that accurate value can come.

4 0
3 years ago
Other questions:
  • Which of the following describes the effect of the purchases that consumers
    10·2 answers
  • Which of the following are criteria for determining whether to record an asset as a fixed asset?
    5·1 answer
  • How would you bookmark a web page using a GUI web browser?
    10·1 answer
  • Sometimes reactions to prices in oligopolistic markets can result in a _________, which occurs when two or more firms compete pr
    12·1 answer
  • Joe pays Ann to mow his lawn, but Ann mows Donna's lawn by mistake. Donna peeps out her window and sees Ann mowing, yet says not
    11·1 answer
  • All of the following statements regarding the double-entry system are true except:__________. 1. both sides of the accounting eq
    8·1 answer
  • Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $ 250 comma 000 six years earlier and
    6·1 answer
  • The ___________________Party believes in individual freedom and that the only purpose of government is to protect this freedom.
    13·1 answer
  • Job cost sheets can be used to: (Check all that apply.) Multiple select question. provide a permanent record for the Cost of Goo
    10·1 answer
  • One positive impact that industrialization has had is that.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!