Answer:
The price earnings ratio for Beta corporation is 8 times
Explanation:
The formula for price-earnings ratio is the stock market price divided by the stock earnings per share.
The stock market price has been given as $52 per share
the earnings per share=net income-preferred dividends/weighted average number of shares
net income is $325,000
preferred dividends is $0
weighted average number of shares is 50,000
earnings per share=($325,000-$0)/50,000=$6.5
price earnings ratio=$52/$6.5= 8 times
Answer:
The answer is 2.5
Explanation:
Mpc = marginal propensity to consume
Mps = marginal propensity to save
Multiplier = 1/ 1-mpc= 1/ mps
Multiplier = 1/ 1-0.6 = 1/ 0.4 = 2.5
The sample standard deviation of this dataset is =19.1.
The Standard deviation is a degree of the amount of variant or dispersion of a set of values. A low widespread deviation indicates that the values tend to be near the mean of the set, at the same time as a high widespread deviation indicates that the values are spread out over a much wider variety.
x x- \bar x=x-101 (x-ˉx)2
96 -5 25
125 24 576
80 -21 441
110 9 81
75 -26 676
100 -1 1
121 20 400
∑x=707 ∑(x-\bar x)=0 ∑(x-\bar x)2=2200
Mean \bar x =∑x/n
=96+125+80+110+75+100+121/7
=707/7
=101
Sample standard deviation S=√∑(x-\bar x)2/n-1
=√2200/6
=√366.6667
=19.1
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Answer:
The expected rate of return on this stock is 10.31%
Explanation:
The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,
P0 = D0 * (1+g) / (r - g)
Plugging in the values,
65 = 1.7 * (1+0.075) / (r - 0.075)
65 * (r - 0.075) = 1.8275
65r - 4.875 = 1.8275
65r = 1.8275 + 4.875
r= 6.7025 / 65
r = 10.31% or 0.1031
Answer:
A.that many investors are selling their stocks in anticipation of lower profits
Explanation:
In stock market terminologies, a bear market is a selling market. If the traders' sentiments are to sell a stock, tell the market for the stock is referred to as a bear market.
Generally, when a company is performing well financially, its stock price will appreciate. Investors will buy its stocks in anticipation of increased dividends and selling the stocks at a higher price. Should investors anticipate a loss, they will start selling the stocks. Karen is concerned with the current bear market as it signals the stocks are likely to yield reduced earnings.
