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
aksik [14]
3 years ago
5

Suppose that the MC Software Corporation earns a profit of $10 per share. If the prevailing interest rate is 12 percent and the

stock is currently selling for $100 per share, what is the current price/earnings ratio
Business
1 answer:
dsp733 years ago
4 0

Answer:

Price Earning Ratio = Price/Earnings = we use the general formula.

\frac{100}{10}

$100/$10 = 10 times

Explanation:

Price Earning ratio is calculated using the current market price of share and earnings per share of the company. In the given question there is no relevance of interest rate as this is not the cost of equity.

Price Earning Ratio tells how much earnings are required to meet the cost of 1 share.

Another formula for P/E ratio = 1/Cost of Equity. Since 12% is not cost of equity this formula cannot be used.

Also earnings per share is given assumed it is after interest cost if any.

You might be interested in
How did the 1950s get their money
Fofino [41]

Answer:

work

Explanation:

3 0
3 years ago
Explain how a factory assembly line is an example of specialization?
s344n2d4d5 [400]

Answer:It is

Explanation: because the line is divided in different sector. Each sector has specific operations, using specific tools and specific process. Each operation or group of operations must be done by employees or workers. Those worker also required specialized training.

3 0
3 years ago
The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be
Inessa [10]

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to: Observe physical counts of the inventory items.

<h3>Which of the following audit procedures is best to perform to determine that company legally owns inventories?</h3>

To best ascertain that a company has properly included merchandise that it owns in its ending inventory, the auditors should review and test the: Purchase cutoff procedures. Purchase cutoff procedures should be designed to test whether all inventory Owned by the company was recorded.

Observe merchandise and raw materials during the client's physical inventory taking.

To learn more about the  inventory visit the link

brainly.com/question/14184995

#SPJ4

4 0
2 years ago
The members of a cross-functional team have an informal agreement that whenever a team member goes out of town on business, that
Studentka2010 [4]
<span>The type of arrangement where the members of a cross-functional team have an informal agreement that whenever a team member goes out of town on business, that the team member will leave a phone number where he can be reached by the other members of the team is known as group norm.</span>
3 0
4 years ago
The term ________ refers to a limited-capacity store that not only retains information over the short term (maintenance), but al
notka56 [123]

Answer:

Short term memory or working memory

Explanation:

Woekin memory or short term memory refers to a limited-capacity store that not only retains information over the short term (maintenance), but also permits the performance of mental operations with the contents of this store (manipulation)

7 0
3 years ago
Read 2 more answers
Other questions:
  • There are approximately 900,000 television households in the San Diego County market. During a Sunday afternoon in October, 50 p
    15·1 answer
  • To be considered a qualified mortgage, the loan must have specific features and meet designated underwriting requirements. Based
    10·1 answer
  • Activity-based costing allocates overhead to multiple cost pools and assigns the cost pools to products using cost drivers.
    14·1 answer
  • Ratchet Manufacturing's August sales budget calls for sales of 8,000 units. Each month's sales are expected to exceed the prior
    13·1 answer
  • A nurse is a part of what career pathway?
    12·1 answer
  • Fairhaven Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of $90. A competitor is introduc
    8·1 answer
  • Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 520,0
    5·1 answer
  • A factory machine was purchased for $125,000 on January 1, 2012. It was estimated that it would have a $25,000 salvage value at
    14·1 answer
  • A software company developed a new virus protection software named LockDown. The box containing the CD displayed the company nam
    8·1 answer
  • A consumer contest is an example of Group of answer choices sales promotion. public relations. personal selling. indirect sellin
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!