Answer:
Price-earning ratio is 28.57 .
Explanation:
Price earning is a ratio widely used by common stock holder in stock market. The ratio is used to measures share price in relation to earning per share. The ratio tells us years require to recover amount spend on acquisition of share.
Detail calculation is given below.
Sales $ 5,600 -A
Net profit $ 168 -B
EPS $ 0.042 -B/4000
Price-earning ratio = 1.2/EPS = 28.57
Answer:
d. Market clearing price will fall, and equilibrium quantity will fall.
Explanation:
Inferior goods are those goods which do not behave normally to market.
As with increase in consumer spending capacity, their demand decreases.
Accordingly with decrease in demand , the prices will fall.
Thus, either Statement b is correct or statement d.
Since demand and price both tend to fall, the equilibrium quantity will fall for the same, as the demand will be low, the equilibrium quantity will fall to meet the demand level.
Thus, Statement D is correct.
Answer:
Answer is explained in the attachment.
Explanation:
Answer:
(a) Compute the return on investment (ROI) for the current year.
Current ROI 8.72%
Explanation:
Sales 3,018,000
- Variable Cost 1,979,808
- fixed cost 594,600
Operating Income 443,592
Operating assets 5,087,200
Return on Investment
ROI = 433,592/5,087,200 = 0.087197 = 8.72%
