Answer:
Estimate Value of a share= $71.81
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative P/E ratio.</em>
Value of share = EPS × P/E
The appropriate P/E ratio would be that of a similar operator in the same industry, in this case , Jones Soda.
Hence the estimate value of share =2.04 × 35.2=71.81
Estimate Value of a share= $71.81
Answer: $3,756.50
Explanation:
The Discount on Note Payable is used to record the interest charge on a note that is already included in the maturity value of the note. It is based on the present value of the loan and the prevailing interest rate.
= Present value of the loan for three years * Prevailing interest rate
= 37,565 * 10%
= $3,756.50
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Answer: c. The activity is abnormally dangerous
Explanation:
Strict liability is also referred to as the absolute liability, and this term means legal responsibility for injury or damages, despite the fact that the individual or business that's found strictly liable wasn't negligent or probably at fault for the injury to damages.
In this case, if Earth Movers, Inc., uses dynamite to prepare land for highway projects, a strict liability is imposed on this activity because it is abnormally dangerous.