GDP Deflator= (Nomial GDP÷ Real GDP)×100
=(10÷4)×100
THUS GDP deflator = 250
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.
Answer:
The answer is: A) Produce the products with the highest contribution margin per unit of constrained resource.
Explanation:
Follow my example:
A brewery produces two types of beer; dark and light. They share the same ingredients, malt and wheat. You can get all the wheat they need but only 500 units of malt.
- Dark beer needs 2 units of malt and they can earn a $3 profit per bottle.
- Light beer needs 1 unit of malt and they can earn a $2 profit per bottle.
Your total production can be 250 dark beers with a $750 profit, or 500 light beers with a $1,000 profit.
You should only produce light beer since your contribution margin per unit of malt is $2, while dark beer's contribution margin per unit of malt is $1.50
Answer:
11.59% growth rate
Explanation:
This analysis is done in the SUSTAINABLE GROWTH RATE MODEL.
Pepperdine Incorporation's Return on Equity (ROE) is equal to 19%
Pepperdine Incorporation's Retention Ratio (RR) is equal to 61% of it's earnings.
This implies that Pepperdine Incorporation' retains 61% of income(earning) for investment purposes.
The firm's growth rate will be gotten from multiplying the ROE by the RR.
That is: 19% × 61% = 11.59%
That is the answer.
Return on Equity and Retention Rate are two indices used in growth rate measurement.