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natita [175]
4 years ago
5

A low P/E for a stock indicates that:

Business
1 answer:
pishuonlain [190]4 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.

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On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $161.
Leni [432]

Answer:

$208

Explanation:

Using the FIFO Inventory method, inventory items are assumed to be sold in the order in which they were purchased from the earliest to the latest.

The order of purchase of the inventory items are.

Jun. 1, DVD Player 1012, $113

Nov. 1, DVD Player 1045, $95

Nov. 31, DVD Player 1056, $88

Therefore, if two of the three items are sold, the cost of goods sold is the cost of the first two items purchased

= 113 + 95 = $208.

4 0
4 years ago
Read 2 more answers
Robinson's has 24,000 shares of stock outstanding with a par value of $1 per share and a market price of $40 a share. The balanc
Zina [86]

Answer:

Find attached question with multiple choices

The third option ,72,000 shares, is the correct answer.

Explanation:

A stock split refers to redenomination of shares by increasing the number of shares and proportionately reducing the number par value per share.

A 3-1 share split means that one prior share now commands three shares while the price of one share is apportioned between the three shares

Robinson now 3/1*24,000 shares=72,000 shares

One previous share was $1 par value but the three new shares would $1/3=$0.33 per share instead of the previous $1 par value

Download xlsx
7 0
3 years ago
Charisma, Inc., has debt outstanding with a face value of $5.5 million. The value of the firm if it were entirely financed by eq
rjkz [21]

Answer:

$0.69 million or $690,000

Explanation:

Value of Firm Vₐ = $24.7 million

Debt D = $5.5 million

Shares S = 390,000 * 51 = $19.89 million

Therefore Value Vₓ = 5.5 + 19.89 = $25.39 million

We would expect Vₐ and Vₓ to be the same value. Therefore the decrease in the value of the company due to expected bankruptcy costs is

= $25.39 million - $24.7 million

= $0.69 million

3 0
3 years ago
The stage in the evolution of new products in which ideas that match company objectives are analyzed as to whether the firm has
qwelly [4]

Answer:

The question is incomplete, it misses the options. The options are the following:

a) exploration.

b) Product development.

c) Test marketing.

d) Screening.

e) Business analysis

And the correct answer is the option A: Exploration.

Explanation:

To begin with, the stage of <em>"exploration"</em> in the process of developing new products by the companies is the one in where the expertises primarily focus on the devolpment of new ideas that may match with what the company is looking for and therefore that in this part it is quite common to do storm ideas or techniques like that in where the whole group focus on coming together in few options that will pleased the superiors that will later accept or not the idea and will pass the stage to the next one or will have to start thinking about new ideas.

8 0
3 years ago
Identify the percent increase in sales of parkas and the percent increase in sales of raincoats. then find which percent of incr
Black_prince [1.1K]
Does anyone know the answer?
3 0
4 years ago
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