Suppose that the MC Software Corporation earns a profit of $10 per share. If the prevailing interest rate is 12 percent and the
1 answer:
Answer:
Price Earning Ratio = Price/Earnings = we use the general formula.
$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.
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Answer:
O The size of the labor force is 40 million
Explanation:
Given:
Participation rate is 75%
Unemployment rate is 10%
Employment rate is 67.5%
The number of employed is 27 million.
As the employment rate is 67.5% of the size of the labor force which means that 27 million people are employed, we can say that number of people are employed equals to 67.5 percent of the total size of the labor force and we can write it numerically as:
27 = size of the labor force 67.5%
27 = size of the labor force
27 = size of the labor force
Dividing both side by 0.675
Size of the labor force = 40 million
Therefore, (O The size of the labor force is 40 million) option is correct.