Answer:
PE ratio for both company is = 8.33 %
Explanation:
given data
reported earnings = $959,000
generate earnings = $959,000
require return = 12 percent
to find out
current PE ratio
solution
we get here PE ratio of each company that is here express as
PE ratio = .....................1
put here value we get
PE ratio =
PE ratio = 8.33 %
so PE ratio for both company is = 8.33 %
Answer:
The correct option is C,$25,000
Explanation:
In discharging a contract ,it is mandated that the parties should be restored back to their previous positions as much as possible,prior to entering into the agreement.
In other words,prior to paying Dora Clay Pots has a cash amount of $25,000 which has been parted with as a consideration for the online marketing campaign,hence Clay pots should be restored to its prior position of having at its disposal cash of $25,000.
Conclusively,the compensatory damages is the return of cash of $25,000.
Answer:
d. $25,900
Explanation:
The computation of the total selling expenses are shown below:
Sales representative commission $19,500
Monthly salary of sales manager $4,400
Advertising expense per month $2,000
Total selling expenses $25,900
The commission is computed below:
= Budgeted sales × commission percentage
= $325,000 × 6%
= $19,500
Answer: Please see below for answer
Explanation:
Jones
Advertise NOT to advertise
Smith Advertise 8,8 12,6
NOT to advertise 6,12 10,10
To show that advertising is a dominant strategy.
Here if smith advertises, the best option is for Jones to advertise too since Jones will be getting a high pay off of $8million. when Smithy fails to advertise, the best option is for Jones to stll advertise sinvehe will be getting a higher payoff of $12 million. The dominant strategy is for Jones to advertise.
In the same vein, if Jones advertises, the best option for smith is to advertise too since he will get a high pay off same with ones at $8million. and if Johns fails to advertise, Smith should still advertise since he will be getting a higher pay off of $12million than $6million making the dominant strategy for smith to be in favor of advertisement.
This shows that advertising is a dominant strategy as a higher payoff is guaranteed.
b) If the government places a ban on cigarette ads, both firms will receive $10 million as neither of them will be able to advertise , than when both firms advertise with a pay off of $8million. The two firms should favor the ban as they will receive a higher payoff if both do not advertise.