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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.

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3 0
3 years ago
Production Budget
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Answer and Explanation:

The preparation of production budget is shown below:-

                      Weightless Inc

                    Production Budget

         For the month ending October 31

                             Units Bath Scale            Units Gym Scale

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be sold                       150,000                         90,000

Desired Inventory,

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Total                          162,500                           98,000

Less: Estimated Inventory,

October 1                   -18,000                           -10,000

Total Units to be

produced                  144,500                           88,000

5 0
2 years ago
Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union positi
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Answer:

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