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3 years ago

The p/e ratio can be interpreted as ""the number of years’ earnings to pay back purchase price"" True or False

Business

1 answer:

ICE Princess25 [194]3 years ago

7 0

Answer:

True

Explanation:

P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.

Price earning ratio= $\frac{market\ value\ price\ per\ share}{earning\ per\ share}$

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An argument for trade tariffs is that it protects infant industries.

3241004551 [841]

Answer:

The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale.

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2 years ago

A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:

dexar [7]

Labour cost variance = R.s 33,000 (F)
Labour rate variance = R.s 33000 (F)
Labour efficiency variance = 0

Given:

Standard Number of men = 60

Standard Number of women = 30

Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

Labour cost variance
Labour rate variance
Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance = [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance = R.s 33,000 (F)

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

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3 years ago

A benefit that is sought by an interest group and that once achieved cannot be denied to nonmembers is called a:

aivan3 [116]

<span>A benefit that is sought by an interest group and that once achieved cannot be denied to nonmembers is called a free rider. The free rider problem is created from market failure because people take advantage of being able to use common resources or collective goods without being able to pay for </span>them.

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3 years ago

Clabber Company has bonds outstanding with a par value of $123,000 and a carrying value of $111,100. If the company calls these

White raven [17]

Answer:

The gain on retirement = $4,600

Explanation:

The gain or loss on retirement = Carrying Value of the Bonds - Call price of the Bonds

The gain or loss on retirement = $111,100 - $106,500

The gain on retirement = $4,600

Note: Par value will not be taken for the calculation of the above

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3 years ago

lisette’s laptop needs a unique battery, and a local computer parts company is the only place that sells it. given the demand fu

Allushta [10]

Answer:

-5000

Explanation:

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3 years ago