Answer:
(A). People may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.
Explanation:
Price Earnings ratio of a company represents market price per share of a company's stock in relation to it's earnings per share.
Price Earnings ratio(PER) is given by the following formula:
PER = 
A lower P/E Ratio indicates that a company's market price of a share is lower relative to it's earnings. This means the company's stock is undervalued.
It can also mean that the company's earnings have increased which in turn has increased it's earnings per share.
Investors in general expect lower earnings in future for the stock of a company with low P/E Ratio.
The answer is accomplishment. It is because an individual is
likely to feel accomplished if he or she was able to achieve the goal that he
or she is trying to pursue and that these accomplishments that he or she
achieved has paid the efforts that he or she pushed to and it has make a
difference.
Answer:
b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.
Explanation:
The probability of discovered oil = 0.25 (25%)
Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit
= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750
Developing = Probability of finding the oil × Future Profits - Cost of Well
= 0.25 × $7,500,000 - $750,000 = $1,125,000
= $1.125 million
Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.
Answer:
The statement is true, as it is an example of foreign direct investment.
Explanation:
Foreign direct investment is the direct investment by individuals or legal persons in production or business operations abroad. In this context, investments include both acquisition of foreign operations and expansion of own operations.
Foreign direct investment does not include the purchase of either shares or bonds per se. More specifically, the IMF has restricted direct investment on acquisitions to cases where the foreign investor owns 10% or more of the shares that give administrative rights in the business. Investment funds that can be classified as foreign direct investments therefore include equity deposits, reinvestments of dividends from the business, as well as the allocation of short-term and long-term loans between parent companies and subsidiaries.
The necessary journal entries for October month are attached below in the image :
<h3>What do you mean by journal entries?</h3>
All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.
All the necessary journal entries are attached below:
Learn more about journal entries:
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