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uysha [10]
3 years ago
15

The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings, i.e., at a p/e ratio of 20

. What would be the most likely effect of a 10 cent increase in Securetech's basic EPS
Business
1 answer:
hjlf3 years ago
6 0

Answer:An increase in market price of approximately $2 per share.

Explanation: A common stock is the stock of a company which entitles the owner certain right to ownership of a company, such as the ability to vote during annual general meetings and are also known to be popular to the population more than other types of stocks.

A TEN(10) PERCENT RISE IN SECURETECH'S BASIC EARNINGS PER SHARE WILL MOST LIKELY LEAD TO APPROXIMATELY $2 RISE IN THE MARKET PRICE OF

SECURETECH'S BASIC EARNINGS .

Mathematical calculations

10% increase= (10÷100)*20dollars

= 0.1*$20

=$2 increase in earning per share.

You might be interested in
the probabilities that stock A will rise in price is 0.61 and that stock B will rise in price is 0.39. Further, if stock B rises
Flauer [41]

Answer:

0.7699

Explanation:

The calculation of the probability that at least one stocks is shown below :-

∩ represents the interaction of sets.

while

∪ represents the set of all elements in the collections.

So,

P(A ∩ B) = P(B) × P(A ÷ B)

= 0.39 × 0.59

= 0.2301

P(A ∪ B) = P(A) + P(B) - P(A ∩ B)

= 0.61 + 0.39 - 0.2301

= 1 - 0.2301

= 0.7699

4 0
3 years ago
A characteristic of the market system is:A. Extensive use of direct methods of productionB. A focus on labor, as opposed to capi
riadik2000 [5.3K]

Answer: Option C

Explanation: In a market system, the suppliers are willing to produce those goods that have value to the consumers directly or indirectly. The focus is on maximizing output for achieving the economies of scale so that goods could be sold at a lower price, thus, increasing the sales.

Hence,the suppliers in case of market system use more of capital goods as they produce more output and relatively shortens the cost per piece.

Thus, the correct option is C.

5 0
3 years ago
On January 15, Marigold Corp. sells merchandise on account to Bramble Associates for $5700 with terms 2/10, n/30. On January 20,
mr Goodwill [35]

Answer:

Marigold Corp.

The amount received from Bramble is $4,508.

Explanation:

a) Computation of Amount Received:

Jan. 15 Sales = $5,700

Jan. 20 Returns (1,100)

Balance due     $4,600

Jan. 24 discount  ($92)

Cash collected $4,508

b) Discount allowed = 2% of $4,600 = $92

c) This is in accordance with the trade terms 2/10, n/30, which allows a cash discount of 2% if payment was made within 10 days from the date of purchase, with the last allowed credit within one month.  From January 15 to January 24 is 10 days.  So, the cash discount of 2% applies on the balance due after the sales returns.

3 0
3 years ago
Which of the following statement best summerazirs the principle behind the efficient use of the internet for research
aniked [119]

Know what you are looking for and carefully filter information for accuracy.

3 0
3 years ago
Married taxpayers Otto and Ruth are both self-employed and file a joint return. Otto earns $352,000 of self-employment income an
butalik [34]

Answer:

$795.5

Explanation:

To calculate how much 0.9% income they have to pay, the law says anybody that earns above 250000 as married couple is entitled to pay above 0.9%, so for them we will subtract the 250000 from it and also Ruth loss of 13,500

So we have;

(3520000-13500-250000)*0.9%=

$796.5

5 0
3 years ago
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