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liq [111]
3 years ago
12

Tina's Track Supply's market-to-book ratio is currently 4.5 times and the PE ratio is 10.5 times. If Tina's Track Supply's commo

n stock is currently selling at $100 per share, what is the book value per share and earnings per share?
Business
1 answer:
ANEK [815]3 years ago
3 0

Answer: $22.22 and $9.52

Explanation:

The market to book ratio compares market value and book value. In this question, the market to book ratio is 4.5 times which means that Tina's Track Supply's common stock is trading at 4.5 times of the book value.

            4.5 = \frac{Market value}{Book Value}

                   =  \frac{100}{Book Value}

Book value =  \frac{100}{4.5}

                   =$22.22

The Price Earning ratio is calculated by dividing price per share by earnings per share (EPS)

          10.5 =  \frac{100}{EPS}

           EPS =  \frac{100}{10.5}

                   =$9.52

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With respect to binding Frakking Mining to contracts, Emery is: B. an agent and has the authority.

<h3>What is contract?</h3>

A contract can be defined as an agreement between two or more parties in which the parties involve tend to agreed to the terms and condition of the contract.

Hence, if Emery serves in a representative capacity for Frakking's Mining Corporation owners with regards to binding Frakking Mining to contracts, Emery is will be an agent and tend to have the authority.

Therefore the correct option is B.

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3 0
2 years ago
Consider the following scenario:Suppose that Sharon has just finished smoking a cigarette and is thinking about throwing the cig
BlackZzzverrR [31]

Answer:

Moral codes and social sanctions

Explanation:

Externality is when the actions of a producer or consumer have an effect on third parties not involved in production or consumption.

Externality can be positive or negative.

Postive externality is when the benefits of economic activities to third parties exceeds the costs.

Negative externality is when the costs of economic activities to third parties exceeds the benefits.

Smoking and littering the environment with cigeratte butts is an example of an activity that generates negative externality.

Sharon's morals and sense of judgement cautioned her against littering with her cigarette butts because she knows such activity is frowned against by the society. So, in this case she is guided by her moral codes.

This is one of the solutions to externality.

Other solutions include:

Taxation

Integration of different types of businesses through merger or acquisition

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I hope my answer helps you

3 0
2 years ago
True Vibgyor Inc. sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have
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Answer:

D.  Razor -Razor -blade

Explanation:

A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to  the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.

True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.

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Risk or financial loss ...
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