1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bezimeni [28]
3 years ago
8

The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang

ed. What would happen to the company's price-earnings ratio? A. Remain unchanged B. Impossible to determine. C. Increase D. Decrease
Business
1 answer:
WINSTONCH [101]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = \frac{Market\ Price}{EPS}

                                                   =  \frac{15}{5}

                                                   = 3

Price-earning ratio at New price = \frac{Market\ Price}{EPS}

                                                   =  \frac{18}{5}

                                                   = 3.6

Hence, price-earnings ratio increases.

You might be interested in
In​ 2007, Newmarket Inc. set as its annual production goal the manufacture of​ 125,000 units. By​June, the economy had declined
vredina [299]

Answer:

(E) Managers need to stay alert to environmental changes that may impact the implementation of a plan and respond as needed.

Explanation:

Planning has to be dynamic and not static. Manager who are aware of the trends in an economy are suppose to, expected to adjust their plans to align with the present economic reality in other not to run into crisis.

7 0
4 years ago
"University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum
barxatty [35]

Answer:

Enrollment in this school will likely be below the equilibrium level.

While the price of tuition has been set at the equilibrium level, and as a result, the demand for tuition is also at the equilibrium level (the demand is the amount of students that want to enroll in university A), the amount of students that will enroll will likely be below equilibrium because the University is using non-pricing mechanisms to restrict demand: minimum GPA and SAT scores.

3 0
3 years ago
Your uncle is offering to sell you his T-shirt printing business for $1M. You think a multiple of 10X earnings (profit) is fair.
Archy [21]
No because it is to expensive and the modern outfits are changing relatively quickly
8 0
2 years ago
Which of the following is not a benefit of a store channel shopping experience?
barxatty [35]

Answer:

Expanded assortments

7 0
3 years ago
Select all that apply GAAP and IFRS rules ______. require that the same method be used for both internal and external segment re
Alexxandr [17]

Answer:

The correct options are "A, C, and D".

Explanation:

  • GAAP becomes regarded as a relatively 'rules-based' management framework, seems to be the accounting technique used throughout the United States
  • IFRS becomes quite 'principles-based', although this would be the accounting framework used in more than 110 countries throughout the globe.
  • These allow the same approach being used for international and domestic section reporting, which generate reconciliation issues.

4 0
3 years ago
Other questions:
  • On April 1, Tamarisk, Inc. began operations. The following transactions were completed during the month.
    9·1 answer
  • An individual has a disability income policy with a Change of Occupation clause when he changes to a new more hazardous job. He
    8·1 answer
  • The two types of utilitarianism are _____ and _____ . primary; secondary causal; superfluous consideration; evoked proactive; re
    6·1 answer
  • What questions should someone ask themselves before taking a job?<br><br> what is your answers.
    13·2 answers
  • Which decision-making models best describe how decision-making takes place in the research and development laboratory of a major
    7·1 answer
  • If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken should be repo
    5·1 answer
  • With respect to the consumer price index, the substitution bias arises because:
    12·1 answer
  • Do you think it is possible for a bad strategy to be implemented and executed well and
    10·1 answer
  • Endorsement occurs when an athlete licenses his or her name to be used as a type of testimonial for a product or service.
    11·1 answer
  • the investment portfolio of younger investors should be heavily weighted toward conservative assets such as government bonds and
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!