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Rudiy27
4 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]4 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]4 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

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xxMikexx [17]

Answer:

The answer is: D) With increases in​ technology, the aggregate production function shifts​ up, indicating more output is produced from the same amount of inputs.

Explanation:

Technological improvements in new manufacturing machines and tools enable the production of more manufactured goods using the input. As technology increases, the production function shifts upward, is steeper, and the marginal product of capital increases.

5 0
3 years ago
According to the assumptions of CVP, ______ will not change as the volume of a product increases or decreases. total variable co
fgiga [73]

Answer:

Fixed costs, sales price, and variable cost per unit

Explanation:

Cost-volume-profit (CVP) analysis is a cost accounting technique that examines how operating profit is affected by varying levels of costs and volume. Another name for CVP is break-even analysis because for different sales volumes and cost structures, it provides the break-even point (BEP) for different sales volumes and cost structures. BEP can assist managers during the short-term economic decision making.

Some of the assumptions of CVP are that fixed costs, sales price, and variable cost per unit will not change even when the volume of a product changes. The change in the volume of a product can either be an increase or a decrease.

Therefore, according to the assumptions of CVP, fixed costs, sales price, and variable cost per unit will not change as the volume of a product increases or decreases.

I wish you the best.

5 0
3 years ago
Using the picture of the supply and demand curves below, identify the point which
Doss [256]

Answer:

c is the correct represent the equilibrium price if I am not wrong

Explanation:

<em>sry </em><em>if </em><em>I </em><em>a</em><em>m</em><em> </em><em>wrong</em>

8 0
3 years ago
Chipper, the marketing director for Tee Time Golf Resort, is making plans for the annual tournament and is trying to determine t
HACTEHA [7]

<u>Chipper's analysis of the situation sounds reasonable to the general manager-This statement is true  according to the expectancy theory.</u>

Explanation:

<u>Expectancy theory states that the employee in an organization will be motivated to work or put in efforts if they believe that the putting in more effort will yield them better result in terms of their job performance (The benefits can be in form of an increase in salary or incentives)</u>

An employee would be motivated to put in higher amount of effort to perform better on the job. This would occur at an even rate if he knew what the rewards were going to be.

<u> For instance, an extra day off or increase in salary.</u>

<u>According to expectancy theory, t</u>he participants will ask themselves if it is possible to win the tournament given the other talent that will be competing, and, whether  the experience and reward be worth the expense that they are incurring  for a round of golf.

7 0
4 years ago
Selling the rights to use your company's brand name in return for a lump-sum payment and a share of the profits generated is ref
Katarina [22]

Answer:

(D) franchising.

Explanation:

The franchising is an innovative idea to increase the sales of the company brand through which the company can able to capture maximum market size across the work. This strategy works with the motive to expand the business.

In this, there are two parties i.e franchiser and franchisee. The franchiser sells its logo, name, rights to the outlets that we called franchisee. For this, the franchiser gets the lump sum payment and profit share, etc.  

8 0
3 years ago
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