Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.
Explanation:
Market Cap = P/E ratio * Earnings
Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.
For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.
If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.
Answer:
6,000
Explanation:
Bellue incorporated manufactures a single product
The variable costing net operating income is $92,400
The inventory is 3100 units
The fixed manufacturing overhead cost is $1
Therefore the absorption cost can be calculated as follows
= 9200-1 x3200
= 9200- 3200
= 6000
Hence the absorption cos is $6,000
It is false that real estate is a great way to investment for everyone, particularly since the money is more liquid than common stocks.
<span>Hackers who intend to profit from their actions are motivated by money. Those who hack electronics/items in the means to collect profit from doing so are motivated by money. Money is their driving force to hack the item they were told to. </span>
Answer:
For recording the reduction in value the Journal entry is shown below:-
Explanation:
The Journal entry is shown below:-
Impairment Loss Dr, $11,70
To Debt Investment $11,70
(Being the reduction in value is recorded)
Therefore, Impairment loss is an loss and we already know that all the expenses and losses are debited and investment is an asset that shows the decrements hence it is credited.
Working note :-
Impairment loss = Carrying value - Decrease in value
= $76,700 - $65,000
= $11,700
