Answer:
1. Which Statement is true:
B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.
2. Qualitative analysis:
According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.
Explanation:
Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share. It shows the value investors have over a stock. With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future. This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.
Without competition, Company A is riskier than Company B which operates efficiently and competitively. There is that competitive edge that competitive companies possess. Monopolies do not enjoy that advantage. It is, therefore, riskier to have no competition.
Answer:
the subject of Federal Open Market Committee decisions is as below:
level of interest rates and growth of the money supply
Answer:
<u>Slapshot Company</u>
<u>Income statement for the month of June</u>
Sales ( 1,890 x $360) $680,400
Less Costs of Sales ($378,000)
Gross Profit $302,400
Selling Costs :
Commissions $68,040
Other Selling Expense $64,700
Administrative Expense $53,800 ($186,540)
Net Income $115,860
Explanation:
The Income statement shows the <em>Profit</em> earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.
Answer:
b. to reduce deposits
Explanation:
A Capital requirement refers to the amount of capital that a financial institution must have to meet the requirements set by it's financial regulator. All of the answers provided are purposes that this hopes to accomplish except for reducing deposits. It actually hopes to increase deposits which means more customers that are coming in.
In the question, continuously should be annually.
Solution:
Applicable formula is;
A = P(1+r)^n
Where;
A = Total amount after 30 years = $9,110
P = Amount invested = $5,000
r = Annual interest rate in decimals
n = Number of years = 30
Substituting;
9110 = 5000(1+r)^30
9110/5000 = (1+r)^30
1.822 = (1+r)^30
Taking natural logs on both sides;
ln (1.822) = 30 ln (1+r)
0.5999 = 30 ln (1+r)
0.5999/30 = ln (1+r)
0.019998 = ln (1+r)
Taking exponents on both sides
e^0.019998 = 1+r
1.0202 = 1+r
r = 1.0202 -1 = 0.0202 =2.02%
Therefore, annual interest rate should be 2.02%.
