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4 years ago

Favorita candy's stock is expected to earn $2.40 per share this year. its p/e ratio is 18. what is the stock price?

1 answer:

3 0

The formula to calculate p/e ratio is: price/earnings.

So, the price of the stock would be

p/e ratio = price/earnings

18 = price / 2.4

Price= 2.4 x 18

Price = 43.2

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______ is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities,

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The best description of the definition given above is Related diversification because it entails when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.

<h3>What is Related diversification?</h3>

Related diversification refer to a situation when a firm change into another new industry that is very similar with the firm's existing industry or industries

The benefit of related diversification is it allow the sharing of related resources and ensures profit of real diversification.

Therefore, Related diversification is when a firm enters a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power.

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2 years ago

When each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt, this is calle

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The type of liability that is illustrated in this scenario is known as unlimited liability.

<h3>What is unlimited liability?</h3>

It should be noted that in an unlimited liability company, the general partners are responsible for all the debts and liabilities that are incurred.

In this case, each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt.

Learn more about liability on:

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2 years ago

On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% inte

jeka94

Answer:

1. Discount

2. $449,298.47

3. $369,298.47 gain

4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47

Explanation:

Question 1

Using the formula below

$Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}$

where

I = interest rate, which is 6% of 500,000 = 30,000

F = Face value, 500,000

r = borrowing cost = 12%

Therefore, the price of the note at the time it was used for payment was

$Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}$

= $449,298.47.

As the price is lower than the face value of the note, the note was issued at a discount.

Question 2

The fair market value of the note is $449,298.47, the compute price in question 1.

Question 3

The gain/loss on the sale of the land

= sale price - purchase price

= $449,298.47 - 80,000

= $369,298.47.

Question 4

The transaction would affect Crabb & Co's balance sheet as follows.

<em>Asset side:</em>

land reduces by $80,000

investment increases by $449,298.47

<em>Equity & liabilities side:</em>

reserves increases by $369,298.47

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3 years ago

What characteristics are possessed by the best salespeople?

exis [7]

Answer:

B, D and E

Explanation:

The sales department is a common component that is all organizations. It is comprised of sales representatives with different skills and abilities. The best persons will share similar characteristics. These are the traits that make them effective and puts them at the top. They include

Communication skills. A goods salesperson is able to initiate and sustain a conversation with a customer. Clients tend to resist sale representative whose interest is to close a sale as quickly as possible. He or she must provide excellent proposals and quotes to keep the client interested.
Maintain relationship with clients. A good salesperson maintains a relationship with customers. He or she is not interested in the current deal only, but future prospects too.
Competitiveness. To achieve sales targets, a good salesperson must demonstrate and maintain assertiveness and aggregation in the marketplace.

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3 years ago

Question 832 pts

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3 years ago