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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

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Which of the following is an example of a service business?
Sunny_sXe [5.5K]

Answer:

Which of the following is an example of a service business?

Enterprise Rent-a-Car

Explanation:

Enterprise Rent-a-car is rendering a service which is to give away car to customer for a particular period or time in exchange for money so it is a service business

5 0
3 years ago
The assembly line at the ice cream production facility used to have 20 workers. It now has 10 employees and 10 robots to do the
IgorC [24]

There are different kinds of system.  The robots are an example of automation

<h3>What is Automation?</h3>

This is simply known as the making and application of technologies to create and deliver goods and services with little human hands.

The Examples of Automation are;

  • Automobile
  • Robots
  • Consumer Electronics, etc.

See full question below

The assembly line at the ice cream production facility used to have 20 workers. It now has 10 employees and 10 robots to do the job. The robots are an example of ______.

a. Big Data

b. automation

c. knowledge management

d. collaborative computing

Learn more about  assembly line from

brainly.com/question/1845393

3 0
2 years ago
fremont which uses the high-low method reported total cost of $10 per unit its lowest production level, 5000 units. when product
Gnesinka [82]

Answer:

$2.50

Explanation:

Calculation for the estimation of   variable cost per unit

                        Units     Total cost

High method  15,000×$5  per units  =$75,000

(5,000*3)=15,000

Low  method  5,000*$10 per units=$50,000

Difference  10,000     $25,000  

Variable cost per unit =$25,000/10,000

Variable cost per unit=$2.50

Note: Based on the information given we were told that production tripled to its highest level which means the high method units will be 15,000 units (5,000 units*3)

Therefore Fremont would estimate its variable cost per unit as: $2.50

4 0
3 years ago
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The
lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

6 0
3 years ago
In preparing a statement of cash flows under the indirect method, a decrease in accounts receivable would be reported as a(n): M
denpristay [2]

Answer:Addition to net income in the operating activities section

Explanation:

8 0
2 years ago
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