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Mekhanik [1.2K]
3 years ago
13

You notice that Coca-Cola has a stock price of $41.09 and EPS of $1.89. Its competitor PepsiCo has EPS of $3.90. But, Jones Soda

, a small batch Seattle-based soda producer has a P/E ratio of 35. Based on this information, what is one estimate of the value of a share of PepsiCo stock?
Business
1 answer:
hoa [83]3 years ago
4 0

Answer:

$84.79

Explanation:

For computing the value of a share of PepsiCo stock, first we have to determine the P/E ratio for Coca-cola which is shown below:

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

                                   = $41.09 ÷ $1.89

                                   = $21.74

Now the value of a share for PepsiCo stock would be

= Price-earnings ratio × EPS

= $21.74 × $3.90

= $84.79

All other information which is given is not relevant. Hence, ignored it

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Answer:

Information granularities

Explanation:

Information granularities refers to the level of detail used in modelling of situations or straight decision making process.

It also refers to the extent of detail within the information (fine and detailed or coarse & abstract).

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3 years ago
The publisher from needs to change his calculations. Before the book is actually produced, rising paper costs increase variable
Lerok [7]

Answer:

As the variable cost increased by $2.10 per book so if publisher wants to start making profit at same level of production then it should increase the selling price of the book by $2.10. As the increase in cost and selling price will be same so the publisher will also start making profit at same production level.

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3 years ago
Dirty Don's Bicycle Shop is current financed with 100% equity. The firm currently has 100,000 shares of common stock outstanding
Stella [2.4K]

Answer:

Number of bonds to raise = 2250

Explanation:

given data

current financed = 100% equity

common stock outstanding = 100,000 shares

selling = $50 per share

debt = 45%

equity =55%

par value of a bond = $1,000

to find out

How many bonds would Don have to sell at par value

solution

we get here first the value of equity that is express as

value of equity = Number of shares × Price per share .................1

put here value

value of equity = 100,000 × $50

value of equity = $5,000,000

and

financed with bonds = 45 % of value of equity

financed with bonds = 45 % × $5,000,000

financed with bonds = $2,250,000

so

Number of bonds to raise is express as

Number of bonds to raise = \frac{2,250,000}{1000}

Number of bonds to raise = 2250

6 0
3 years ago
IE 9-3 ... AS/AD Model – Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the
11111nata11111 [884]

Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the RIGHT shifting AD caused by increased "G" spending . If the Price Level increases to $2.34, then Real Production GDP will have increased to $5200 b and 2 million people will have gained jobs. In the Business Cycle the economy will have moved from Point "x" toward Point y.

Explanation:

The AD-AS model (Aggregate production aggregate) demonstrates national income calculation and price level adjustments.

This shows how various events will change in two of our major macroeconomic indicators: Actual GDP and inflation.

  • Label all equilibrium in the axis, the interior
  • The positioning of LRAS provides important economic information, for example, if the efficiency of balance is on the left side of the LRAS, the economy is in recession.
4 0
3 years ago
I have been struggling with quizzes
Rudiy27

Answer:

same here

Explanation:

6 0
3 years ago
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