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
Rudiy27
3 years ago
14

Becker Products is a manufacturer and distributor numerous food products. The company recently reported earnings per share of $5

.50. Based on its recent price of $85.30 the company has a PE ratio of 15.5. Becker Products is part of the food processing industry which has an industry PE ratio of 19.75. Using industry information, estimate the intrinsic value of Becker Products’ equity per share?
Business
2 answers:
lbvjy [14]3 years ago
4 0

Answer:

$108.63

Explanation:

PE ratio of industry=Share price/EPS

19.75*5.5=Share price

Share price =$108.63

atroni [7]3 years ago
3 0

Answer:

The intrinsic value = $469.15

Explanation:

<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>

Price = EPS × P/E ratio

It is appropriate to use the industry average price-earning ratio   for the purpose of this valuation.

The intrinsic value = 19.75 × $5.50 = $469.15

You might be interested in
Drury corporation needs to raise $ 2 comma 300 comma 000. the corporation plans on selling 100 comma 000 shares of $ 23 par valu
ad-work [718]

Net Income before Sale of Shares........................................................$1800000

Additional Income due to sale of shares.............................................$400000

Total Net Income........................................................................................$2200000

Income [email protected]%.........................................................................................($660000)

Net Income After Tax..................................................................................1540000

Total No of Shares.........................................................................................260000

Earning Per Share(Net Income After Tax/No of Shares)......................$5.92

8 0
2 years ago
The stockholders’ equity accounts of Martinez Company have the following balances on December 31, 2017. Common stock, $10 par, 3
lord [1]

Answer:

retained earnings     577,200 debit

   stock dividends payable            577,200 credit

--to record declared stock dividends--

stock dividends payable   577,200 debit

               common stock                156,000 credit

               additional paid-in            421,600 credit

--issued stock dividends--

retained earnings    11,544,000 debit

   stock dividends payable     11,544,000 credit

--to record declared stock dividends--

stock dividends payable   11,544,000 debit

              common stock                      3,120,000 credit

              additional paid-in                 8,424,000 credit

--issued stock dividends--

A 2-for-1 stock split NO ENTRY

Explanation:

<u>Stock dividends of 5%</u>

Shares outstanding 312,000 x 5% x $37 market price

15,600 new shares x $ 37 per share = $ 577,200

First we declare the dividend payable, then we write-off the payable and increase equity.

Common stock for the face value and additional paid-in for the difference:

15,600 x 10 = 156,000

577,200 - 156,000 = 421,600

<u>Stock Dividends of 100%</u>

312,000 x 100% x 37 = 11,544,000

same entries as before but, with difference number

face value 312,000 x 10 = 3,120,000

additional paid-in 8,424,000

<u>A 2-for-1 stock split</u>

No entry is required as the company will have double shares but with halft the value each. It will not effect the total market capitalization.

6 0
3 years ago
If maria gets 80 utils from consuming five​ cookies, 100 utils from consuming six​ cookies, and 120 utils from consuming seven​
Klio2033 [76]

Answer:

The correct answer is 20 Utils

Explanation:

Marginal utility is the change in the utility from an increase in the consumption of a good or service.

Example of Maria

Maria gets 80 utils from consuming 5 cookies

If Maria consumes 6 cookies, The Utils change from 80 to 100. <u>This difference of 20 is called marginal utility.</u>  (100-80=20)

3 0
3 years ago
The demand for a new computer game can be modeled by p (x )equals 48.5 minus 5 ln x​, for 0less than or equalsxless than or equa
Hoochie [10]

Answer:

a. R(x) = 48.5x - x5inx

b. R'(x) = 43.5 - 5lnx

c. The correct option is d. Yes, because the revenue will be maximized when R'(x)=0. The price to the consumer would be <u>$5</u>.

Explanation:

Given:

p(x) = 48.5 - 5lnx, for 0 ≤ x ≤ 800 ............. (1)

a. Find R(x).

R (x) = x * p (x) ........................ (2)

Substitute equation (1) into (2), we have:

R(x) = x(48.5 - 5lnx)

R(x) = 48.5x - x5inx .............................. (3)

Equation (1) is the R(x) required to be found.

b. Find the marginal revenue, R'(x)

The derivative of equation (3) is taken to obtain R'(x) as follows:

R'(x) = 48.5 - 5lnx - x5(1/x)

R'(x) = 48.5 - 5lnx - 5

R'(x) = 48.5 - 5 - 5lnx

R'(x) = 43.5 - 5lnx ...................... (4)

Equation (4) is the marginal revenue, R'(x), required to found.

c. Is there any price at which revenue will be maximized? Why or why not? Choose the correct answer below.

Profit is maximized when R'(x) = 0

Equating equation (4) to 0 and solve for x, we have:

43.5 - 5lnx = 0

43.5 = 5lnx

5lnx = 43.5

lnx = 43.5 / 5

x = e^(43.5 / 5)

x = 6,002.91

Substituting x = 6,002.91 into equation (1), we have:

p(x) = 48.5 - (5 * ln(6,002.91))

p(x) = 48.5 - (5 * 8.70)

p(x) = 48.5 - 43.5

p(x) = $5

Therefore, the correct option is d. Yes, because the revenue will be maximized when R'(x)=0. The price to the consumer would be <u>$5</u>.

5 0
2 years ago
John is a successful businessman. He always maintains a high bank balance. Hence the bank pays him interest. John uses this acco
ratelena [41]

Answer:

Interest-bearing checking accounts

Explanation:

Interest bearing checking accounts provide the customers with a certain amount of interest rates depending on the amount of balance the customers have in their checking accounts.

In general, the interest rate from interest-bearing checking accounts wouldn't be as high as normal saving account. But, many people often use this because it is easier to liquidate your cash through this type of accounts. Fast liquidation make this type of account a convenient options for someone who often conduct a purchase.

4 0
3 years ago
Other questions:
  • If your income varies, you should
    13·1 answer
  • Vulcan Company’s contribution format income statement for June is given below: Vulcan CompanyIncome StatementFor the Month Ended
    9·1 answer
  • Janet is the secretary to the ceo. the ceo uses the corporate jet to travel to locations where he acts as a private consultant.
    6·1 answer
  • A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock at a price of $8.62 per share. The stock pays an annua
    10·1 answer
  • Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $3,120 for electric po
    14·1 answer
  • Without a strong legal systems in a market economy:
    10·1 answer
  • A good example of central planning at work in the U.S. would be: Select one:
    6·1 answer
  • Who is the least likely to be self-employed?
    13·2 answers
  • A certain product has supply elasticity 0.4 and demand elasticity 2.7. If a tax were placed on the product, what is most likely
    11·1 answer
  • Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 51,500 comforters this year. Each comforter require
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!